A Gold Eagle Spread Its Wings An Innovation that Empowers the Future Universal Paper Manufacturers' Greenfield Tissue Mill, South Africa Case Study

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1 A Gold Eagle Spread Its Wings An Innovation that Empowers the Future Universal Paper Manufacturers' Greenfield Tissue Mill, South Africa Case Study Presented by: Jonathan Sher Project Director UPM Presented by: Maja Mejsner Director Business Development & Marketing PMP Group Miami, Florida 6th October 2017

2 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Summary The Future Looks Bright Gold Eagle Today Virtual Mill Tour

3 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Summary The Future Looks Bright Gold Eagle Today Virtual Mill Tour

4 South Africa Tissue Market Country: South Africa Population: 56 mln Market Type: Emerging Forecasted Market Growth: 5% Per Year Tissue Consumption : 4.8 kg Per Capita (2014) GDP per Capita: 5273 USD Product Preferences: Toilet Paper

5 UPP Insight UPP (Universal Paper & Plastics) a Family Business Established In 1950 A South African Tissue Manufacturer & Converter (Mill Location: Ga-Rankuwa Near Pretoria) Annual Turnover: $65 Million Business Units: UPM (2008) & Uinks (2002) Values: Integrity, Commitment, Empowerment, Excellence

6 UPM Mission & Vision Mission: To Develop Innovative Products For The Most Demanding Customers Adding Flavors of Creativity & Education. Vision To Become The Proffered Tissue Supplier in The South African Region, Offering A Wide Span of Ultra-Premium, 100% Virgin Fibre Tissue Paper Products.

7 UPM Fact & Figures Annual Capacity: t/a (Covers 12% of A Local Market) Ranked 3rd in South Africa Machine Fleet (5) Units Focused on Branded Virgin Tissue Products, Parent Rolls and Water- Based Inks Tissue Products: Bathroom Tissue, Household Towels, Serviettes/Napkins, and Hankies FSC Certified Dermatologist Approved

8 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Gold Eagle Today Summary Future Looks Bright

9 UPM Tissue Adventure 1950s-1990s Various Paper & Plastic Products, specializing in Serviettes/Napkins 2006 Invested in Roll Converting and entered roll market 2009 UPM 4 Chinese Tissue Paper Machines Up & Running 2014 Contract Signing for a Green Field Tissue Mill Project Feb 2017 New Green Field Mill came on Stream (Gold Eagle Project)

10 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Summary The Future Looks Bright Gold Eagle Today Virtual Mill Tour

11 Gold Eagle Project Goals Widen Product Portfolio (Adding Ultra-Premium Tissue) Improve Consistency and quality of The Final Product Lift Fleet Technology to A Higher Level Entering Undiscovered Market Niches (New Products In A Portfolio) Increase Market Share Via Capacity Increase (Double Current Annual Capacity)

12 Gold Eagle Project Background From The Idea to The Significant Expansion Plan Learning Process & Facing New Challenges Reference Visits Around The Globe Contract Signed: December 2014 Project Name - Gold Eagle (Dr G. Goldstein & A National Symbol of Poland)

13 PMP (Paper Machinery Producer) At a Glance Global Provider of Tissue, Paper & Board Technology Polish-American Company Annual Turnover (FY 2017:70 mln EUR) Over 160 Years of Experience (est. 1854) Focused on Spectacular Achievements Flexible Partner With a Cultural Sensitiveness PMP MISSION With Passion & Pride, We Create Success Together In The World Of Paper PMP VISION To Be The Best Supplier of Advanced Technologies

14 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Summary The Future Looks Bright Gold Eagle Today Virtual Mill Tour

15 Mill Data Project: Green Field (New Production Facility) Location Next To The Existing Facility Square Meters (UPP) Square Meters (UPM) Project Gold Eagle Scope of Supply: Turn-Key Delivery Project Milestones: Civil Works Start: February 2015 TM Erection Start: August 2016 TM Start-Up: February 2017

16 TM5 Data Machine Type: Crescent Former (Intelli-Tissue 1600 Advanced) Reel Trim: 105 inch (2670 mm) Grade: gsm (Virgin Fibres) Operating Speed : 5250 fpm (1600 m/min) Capacity tpa

17 Technology That Helps

18 Gold Eagle Project Philosophy Philosophy: Premium Quality & Reliability Tailored Made Solutions A Unique Final Product Optimum Cost Solutions (PMPoland - Poland & PMP IB China)

19 Gold Eagle Project Philosophy Top Manufacturing Quality & Risk Management All Equipment Pre- Assembled FAT Poland, Italy, China, Hungary Certified Materials A Wide Set of Movement Tests Completed PRINCE 2 Project Management Approach

20 Start-Up & TM Optimization Intensive Training Prior to Start-Up TM Started Up Smoothly On 19th Feb 2017, 11:20 a.m. Paper on Reel Babysitting 5 Months Period Performance Protocol Signed April 2017

21 Technology That Helps Ultra Low Media Consumption Media Consumption Figures (at 17.5 gsm): Steam: 2.3 T/T Water: up to 6-7 m 3 /T Electricity: 800 kwh/t (Entire Building) TM Efficiency 95% BENEFIT: ULTRA LOW MEDIA CONSUPTION

22 Samples available! Technology That Helps Premium Tissue Quality High bulk MD/CD 1:1.5 1:3 CD Basis Weight Profile: 2σ Less Than 4 % Moisture Profile: 2σ less than 3.5% HF>90 Scrap Less Than 2% BENEFIT: PREMIUM TISSUE QUALITY HIGHER

23 Technology That Helps User-Friendliness of Equipment Annual Downtime: 18 days Smart and User Proof Solutions TM Easy to Operate Easy Cleaning Comfortable Access to Headbox/Press Optimized Clothing Changes 6 People To Operate The Line (60% Savings on Employment) BENEFIT: USER FRIENDLINESS OF EQUIPMENT TIME SAVINGS Felt & Wire Change Time

24 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Summary The Future Looks Bright Gold Eagle Today Virtual Mill Tour

25 Gold Eagle Today TM Is Flying (Running Full Speed) 5 Months After Start-Up 1st State-Of-The-Art TM Installed in South Africa In The Last 20 Years The Biggest Project in UPM History (Taking Both Value & Scope Into Account) 1st PMP Project in Africa & 1st Turn-Key Tissue Mill

26 Gold Eagle Summary The Current ROI - 8% - Expected to Reach 16% Once The Full Capacity Has Been Sold The Cost Per Ton Has Improved By 2% And Will Reduce By Up To 7% Once The Full Capacity Has Been Reached Quality & Capacity Targets Achieved The Future Looks Bright

27 Summary Partnership As A Key For Success Strong Relationship & True Partnership Mutual Respect Share Similar Ideas & Values Business Partners and Families Open Communication Channels Facing Challenges Together To Achieve A Lot More

28 Introduction UPP Insight UPM Tissue Adventure Gold Eagle Project Story Technology That Counts Summary The Future Looks Bright Gold Eagle Today Virtual Mill Tour

29 Gold Eagle Virtual Mill Tour Join the Tour Now! ttps:// 2nN6U&feature=youtu.be

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