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1 ENVIRONMENTAL performance in UPM Madison Blandin

2 Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 2, people and its annual sales are approximately EUR 1 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM The Biofore Company UPM Blandin UPM Blandin is a member of UPM The Biofore Company. This environmental statement is prepared for all operations associated with the Blandin facility for the calendar year 2. This statement also includes the operation of the Minnesota Powerowned cogeneration facility, Rapids Energy Center (REC). Blandin is located near the headwaters of the Mississippi River, in Grand Rapids, Minnesota. A major American waterway, the Mississippi flows through the central region of the United States, then enters the Gulf of Mexico. For over 1 years, the paper mill has been operating on the banks of the river in the heart of the Grand Rapids business district. Blandin manufactures lightweight coated groundwood paper for printers and publishers of magazines, catalogs, and other commercial printing. The facilities include a woodroom, a pressurized groundwood mill, offices for the forestry and woodyard operations, the Rapids Energy Center, and two paper-production lines. Each production line includes a stock preparation area, a paper machine, a coater, supercalenders, winders, and a shared wrapping and shipping area. YEAR OF PROGRESS UPM Corporate ENVIRONMENTAL statement 2 UPM pulp and paper mills UPM Blandin Environmental Performance in 2 is a supplement to the Corporate Environmental Statement of UPM s pulp and paper mills (available at and provides mill-specific environmental performance data and trends for the year 2. The next Corporate Environmental Statement and also this supplement will be published in 216. The current papermaking operations consist of two paper machines: No. 5 paper line began production in 1975 and No. 6 paper line in In 29 there was a major investment in the ground wood mill with the rebuild of four grinders. The Blandin facility uses fresh roundwood (bark is burned at the REC) to manufacture pressurized groundwood pulp, a major component in publication paper. Chemical pulping is not performed on-site. Blandin publication paper is, however, supplemented with purchased chemical pulp. Chemical pulp is provided by UPM or by external suppliers that are required to comply with UPM s environmental policy. Production capacity Approximately 37, metric tons graphic papers PEFC/ Personnel 394 Products Certificates Lightweight coated (LWC) paper for magazines and catalogs UPM Cote UPM Ultra ISO 1 Environmental Management System Standard ISO 91 Quality Management System Standard OHSAS 181 Occupational Health and Safety System Standard PEFC Chain of Custody - Program for the Endorsement of Forest Certification FSC Chain of Custody - Forest Stewardship Council All certificates can be found from UPM s Certificate Finder (available at For PEFC products, visit For FSC products, visit 2 UPM BLANDIN, ENVIRONMENTAL PERFORMANCE IN 2

3 Environmental year 2 At Blandin we believe we can generate revenue while maintaining sound environmental stewardship practices. Environmental management is everyone s responsibility and we work together to ensure quality training and continuous efforts to minimize environmental risks. While safe storage and handling of hazardous chemicals is paramount, our environmental and safety departments - working together - have reduced the use of hazardous chemicals by replacing them with safer products. UPM Blandin has participated in the internal UPM Clean Run program since 211. The goal of Clean Run is to significantly improve the current level of our environmental performance and awareness, including improved risk prevention. UPM Blandin s Clean Run performance continued to meet expectations in 2 with no spills leaving the mill site or causing permit violations (category 3, 4, or 5 environmental incidents). Keys to continuing this performance relate to proper chemical storage, following the proper chemical unloading procedure and checklists, and maintaining equipment and storage tanks and totes. Our employees are to be congratulated on this performance. Clean Run is a proactive way to manage environmental operations at our mill. Idea for the Winder Safety Audit Tool. UPM recognizes exceptional implemented safety ideas with the Best Implemented Safety Idea Award. The Blandin team has travelled to several UPM mills to train employees to use the audit tool. Although the 2 UPM Blandin target to reduce Total Suspended Solids (TSS) being sent to the city waste treatment plant was not met, there was continued improvement over 213 and our best performance in over five years. In addition, improvements were maintained in water and power usage. We look forward to further improving our environmental performance in 215. We understand the ecological and economic importance of maintaining working forests, therefore, we are focused on achieving top performance and a high level of third party verified certifications in forest and mill operations. This assures customers that UPM s paper products stand for long- term sustainability, including responsible use of resources. In 2, chain of custody for our products stood at 44.7 percent PEFC and 17.1 percent FSC. In addition, fully 95 percent of the company s fiber was produced by loggers in the Minnesota Master Logger Certification (MMLC) program that our customers recognize as a credible system for sustainable forest management. Successful external audits of the Blandin ISO 1 system and SFI certification system were conducted in 2, with all programs maintaining certification status. Our employees are highly committed to making our operations safe and actively participate in training, audits, job assessments, and serve on teams focused on safety improvement. Safety has been the highest priority at Blandin for many years because we want our employees to return home each day healthy and injury free. In 2 we received two safety awards: The UPM Safety Frontrunner Award and Best Implemented Safety Nathan Waech, Environmental Manager Joe Maher, General Manager UPM BLANDIN, ENVIRONMENTAL PERFORMANCE IN 2 3

4 Air Water Most airborne emissions from Blandin are generated from the production of pressurized groundwood (PGW) pulp. This process results in the release of naturally occurring volatile organic compounds (VOCs) from mechanically pulped wood, which are controlled with a Regenerative Thermo Oxidizer. Additional airborne emissions include particulate matter (dust), nitrogen oxides (NOx), sulfur dioxide (SO2), and carbon dioxide (CO2). These are all associated with the operations of the Minnesota Power Rapids Energy Center (REC) located on the Blandin site. Students participate in tree planting along a vacated power line to restore large blocks of Blandin forest land. The biological wastewater treatment plant that processes and discharges final effluent for Blandin is owned and operated by the Grand Rapids Public Utility Commission (PUC). The current discharge level corresponds to the level that the biological waste water treatment plant is able to reach with reasonable effort. In order to further decrease the level of discharge, Blandin s objective is to reduce the total suspended solids (TSS) and, specifically ash content entering the waste water treatment plant. The PUC effluent has remained within permitted limits. The Grand Rapids PUC treatment plant can be contacted for additional details on its operational and environmental program. 15 FOSSIL CARBON DIOXIDE, CO 2 1, t/a 25 SULPHUR DIOXIDE, SO 2 t/a BIOLOGICAL CHEMICAL OXYGEN DEMAND, BOD COD 5 tonnes/day mg/l NITROGEN OXIDES, NO X t/a 15 TOTAL SUSPENDED PARTICULATE AIR EMMISSIONS mt TSP/a PROCESS PHOSPHORUS, WASTEWATER P mill. mg/l m UPM BLANDIN, ENVIRONMENTAL PERFORMANCE IN 2

5 Waste The waste management strategy is to reduce the volume of landfilled non-hazardous solid waste as well as hazardous waste. Combustible waste such as oil sorbents and wood wastes are collected and periodically processed for burning in the boilers at the Rapids Energy Center. Hazardous waste is collected and temporarily stored until a permitted contractor transports it to a licensed and authorized treatment facility. The Minnesota Power energy production plant generates ash as a solid waste. The current landfill is designed to handle future solid waste. For over 1 years, UPM Blandin has operated along the banks of the Mississippi River in the heart of Grand Rapids, MN FINAL TREATED EFFLUENT - PHOSPHORUS kg P/day TOTAL SUSPENDED SOLIDS, TSS tonnes/day The wastewater solids graphs summarize the total amount of waste sent from the public utility commission s municipal wastewater treatment plant to its landfill. Wastewater solids are used for daily cover, temporary closure and permanent capping and as fill going directly into the landfill. The waste includes material from Blandin and domestic service as well as material generated by the biological activity at the city of Grand Rapids wastewater treatment plant itself The increase in 212 solid waste to the landfill was from the mill site demolition project permit limit, monthly average SOLID WASTE TO LANDFILL t/a 5, FINAL TREATED EFFLUENT, NITROGEN kg N/day 4, 3, , 1, Ash Bark & Wood Waste Domestic Waste Others The weights included in the figure are dry weights. UPM BLANDIN, ENVIRONMENTAL PERFORMANCE IN 2 5

6 Environmental parameters 2 The figures related to production as well as raw material and energy consumption are published as aggregated figures on group level in the UPM Corporate Environmental Statement. Production capacity Paper 37, t Raw materials and additives Pulp Roundwood Fillers Process Chemicals Other See UPM Corporate Environmental Statement for more information Energy Fossil Fuels Biomass Purchased Power See UPM Corporate Environmental Statement for more information Emissions to air (Includes emissions from Minnesota Power s Rapids Energy Center) Carbon Dioxide, CO2 Fossil Nitrogen Oxide, NOx Sulfur Dioxide, SO2 135, t 373 t 129 t No. 6 line Water intake Process and cooling water 24,54, m 3 Discharges to water (Includes emissions from the GRPUC WWTP) Waste Effluent Volume BOD5 Solids Phosphorus Nitrogen Ash (From Minnesota Power s Rapid Energy Center) GRPUC WWTP Sludge Mixed Office Paper (Recycled) Metals (Recycled) Hazardous (Includes recycled oil) 6,838, m 3 22 t 21 t 4 t 31 t 518 t 17,154 t 41 t 275 t 32 t No. 6 paper line control panel 6 UPM BLANDIN, ENVIRONMENTAL PERFORMANCE IN 2

7 Performance against targets in 2 TARGET 2 RESULTS ACTION ITEMS UNDERTAKEN Achieve a target of 3. metric tonnes per day of solids to the waste water treatment plant. Actual waste water solids were 39.3 metric tonnes per day of solids. Multiple projects by the water and energy team. Current targets TARGETS AND MEASURES DEADLINE DEPARTMENT(S) RESPONSIBLE Achieve a target of 3. metric tonnes per day of solids to the waste water treatment plant. Achieve a target of.5 metric tonnes per day of ash solids to the waste water treatment plant Mill project team Mill project team Environmental verifier s declaration on verification and validation activities Environmental verifier Dr. Detlef Nehm (DE-V-223), acting for TÜV NORD CERT Umweltgutachter GmbH, licensed for the scope NACE Code (papermaking), declares to have verified whether the site Nordland Papier GmbH, in D-26892, Dörpen, Nordlandallee 1, as indicated in the Environmental Statement 211 of the mentioned site (registration no. FI-58), meets all requirements of Regulation (EC) No 1221/29 of the European Parliament and of the Council of 25 November 29 on the voluntary participation by organisations in a Community Eco-Management and Audit Scheme (EMAS). Papier GmbH, within the scope mentioned in the Environmental Statement 211. This document is not equivalent to EMAS registration. EMAS registration can only be granted by a Competent Body under Regulation (EC) No 1221/29. This document shall not be used as a stand-alone piece of public communication. Dörpen, 5 March 212 By signing this declaration, I declare that: the verification and validation has been carried out in full REG.NO. FI - 58 compliance with the requirements of Regulation (EC) No 1221/29, the outcome of the verification and validation confirms that there is An operator uses a scanner to enter no evidence the tracking of non-compliance number with into applicable the legal requirements Several screens Dr. and Detlef cameras Nehm guide operators in the wood room. relating to the environment, the data and information of the Environmental verifier GMES database (global mill execution system). Environmental Statement 211 of Nordland Papier GmbH, reflect a DE-V-223 reliable, credible and correct image of all the activities of Nordland TÜV NORD CERT Umweltgutachter GmbH UPM BLANDIN, ENVIRONMENTAL PERFORMANCE IN 2 7

8 UPM-Kymmene Corporation Blandin 115 1st Street SW Grand Rapids, MN USA Tel For further information, please contact: Nathan Waech Environmental Manager Tel Joe Maher General Manager Tel /215

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