Shanying and Valmet get closer through Shared Journey Forward. Shu Junming, General Manager Zhejiang Shanying Paper

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Shanying and Valmet get closer through Shared Journey Forward Shu Junming, General Manager Zhejiang Shanying Paper

Shanying and Valmet get closer through Shared Journey Forward Contents Shanying International in brief and cooperation with Valmet Shanying and Valmet shared roadmap forward Zhejiang Shanying and challenges Cooperation and results in Zhejiang Shanying Summary 2

Shanying International in brief and cooperation with Valmet in China

Shanying International in brief Shanying International Shanying International is a listed company in China, about 10 thousand employees, head office in Shanghai Shanying International and Valmet have over 12 years of cooperation The total capacity of Valmet supplied production lines has exceeded 3 million tons Xiangheng packaging (15 box Mills). Huanyuan recycling Zhejiang Shanying Paper Co., Ltd Anhui Shanying Paper Co., Ltd Maanshan Tianshun Co., Ltd (harbor) Huazhong Shanying Nordic Paper 3 mills ( Sweden) ( Shanying ) Fujian Liansheng Shanying Financing and leasing Co., Ltd. 6000 Major grades and capacity (about 6,000 kton) 5000 4000 1,500 3000 Manufacturing units and offices in the world 2000 1000 0 3,300 600 200 Liner and fluting Coated board Newsprint Capacity before 2017 New planed capacity 2017-2019 4

Zhejiang Shanying Paper introduction Zhejiang Shanying is the leading company in the city of Haiyan, near Hangzhou Annual production of 1.6 million tons Produces mainly test liner, fluting, white lined chipboard, and a coated liner with 100% recycled fiber. Basic info of all production lines Long-term cooperation with Valmet. PM 13 is equipped with the latest technology, such as a curtain coater and third smooth shoe press. Curtain coater for better coverage No. Grade Web width Design speed Supplier Start up year PM 11 Test liner 6,660 mm 1,100 m/min Valmet 2008 PM12 PM 13 PM 15 Fluting and test liner White top liner, coated liner Core medium, fluting 5,560 mm 900 m/min Valmet 2006 6,660 mm 1,200 m/min Valmet 2011 5,560 mm 900 m/min Local 2011 5

Anhui Shanying Paper introduction Mainly high-quality containerboard and newsprint with 100% recycled fiber PM 2: Started as newsprint line but now mainly produces fluting with basis weight of 50-60 gsm PM 5: Thanks to excellent dewatering performance and good formation, PM 5 operating efficiency is very high PM 6: Equipped with gap forming and double-layer headbox, which significantly reduce wet end energy consumption No. Grade Web width Basic info of all production lines Design speed Supplier Start up year PM 1 Test liner 4,850 mm 700 m/min Local 2002 PM5 PM 2 Newsprint and low basis weight fluting 5,550 mm 1,600 m/min Valmet 2007 PM 3 Test liner, Fluting 5,800 mm 900 m/min Local 2009 PM 5 Test liner 7,920 mm 1,200 m/min Valmet 2014 PM 6 Fluting 7,920 mm 1,700 m/min Valmet 2014 PM6 6

Ongoing projects in Shanying Huazhong Paper Jingzhou city, Hubei province Three production lines under construction Shanying Huazhong PM 21 and PM 23 PM 21 and PM 23, and also reject boilers will be delivered by Valmet 8 th and 9 th board making lines from Valmet to Shanying International PM 23 is globally the 17 th OptiConcept M production line delivered by Valmet These new production lines expect to reduce carbon emission as well as energy consumption No. Grade Web width Design speed PM 21 Test liner 7,920 mm 1,500 m/min PM 23 Low basis weight fluting 7,920 mm 1,400 m/min 7

Shanying and Valmet shared roadmap forward

Shanying and Valmet get closer through their shared roadmap forward Develop the shared roadmap partnership together Valmet is invited to join Shanying s annual forum to introduce industry trends and the latest technologies Yearly summit meeting is arranged to share information of industrial environment and corporate culture building Strengthen communication and develop innovative cooperation in Zhejiang Shanying Move big data management and applications forward in Anhui Shanying Development of roll condition monitoring and grinding service agreement Implementation of energy-saving agreement Valmet Customer Portal to be in use Valmet Performance Center supports Huazhong Shanying start-up and optimization Valmet is a reliable, long-term partner for us. The new cooperation model further deepens our mutual trust, and we are very satisfied with Valmet s honest and responsible attitude. 9

Communications between Shanying and Valmet Shanying International Annual Forum Started in 2017 Purpose is to have all key stakeholders share info on technology, industry situation, etc. One and half day forum Valmet is invited to present the latest developments Communications channels Yearly summit meeting Regular meeting for top management Valmet Mill Team and Shanying team quarterly review meetings Weekly visit by Valmet mill sales manager Working model of Valmet Mill Team and Shanying team Valmet Shanying 10

Zhejiang Shanying Paper s challenges

Zhejiang Shanying Paper s challenges for further development National Sword on solid waste and new Environmental policy Solid waste Recycled fiber Company development and stakeholder expectations Difficulty in new project investment approval Yearly growth in production and probability Labor costs, shortage, competence and Industrial Internet trends Production lines challenges and target for benchmark Water treatment Air and energy 12

Shared Journey Forward and result at Zhejiang Shanying

Zhejiang Shanying PM13 development Aiming to become the benchmark in the industry Machine efficiency: Optimization of tail threading Winder slitter quick change and dust removal Winder automatic operation Machine efficiency Aiming to reduce tail threading time from 55 min to 35 min Achieved: Winder slitter change time from 1 min to 5-10 sec.; > 95% less end customer complaints concerning dust issue Aiming to increase production efficiency > 10% Energy saving: Stock preparation system modification All solutions for paper machine energy saving OptiDry Coat optimization done already Energy saving Aiming to make energy savings in stock preparation > 20% Aiming to make energy savings in paper production > 15% Achieved: Steam saving more than 20% in coating sections 14

Zhejiang Shanying PM13 development Aiming to become the benchmark in the industry Quality improvement: Smoothness improvement by Stock preparation optimization Two Valmet Breast Roll Shakers installed Hard calender upgrade Coverage improvement: Chemical optimization in curtain coating Profiling improvement Automatic coater head profiling Reliability improvement Preventive maintenance Info and MES applied Condition monitoring Field services Quality improvement Reliability improvement Achieved: Stickies decreased > 10% Achieved: Formation improved by > 8 %, web width increased 30 mm Aiming to improve coated grade PPS > 0.2 µm Continuing cooperation with coating color suppliers Aiming to improve coated grade CD coating weight profile >20% Aiming to improve machine efficiency > 2%, and decrease maintenance costs by > 5% in short term Machine efficiency and preventive maintenance have improved Key asset refurbishment 15

Zhejiang Shanying PM11 and PM12 development Aiming to become the benchmark in the industry Target Project Performance description Quality in basis weight CD profile and formation PM 11: Valmet Breast Roll Shaker installed Paper formation improved by > 10% Energy saving and machine efficiency improvement Quality in basis weight CD profile and formation Energy saving and machine efficiency improvement Reliability and speed up PM 11: Wet end dewatering improvement PM 12: Bottom ply headbox Valmet Dilution Retrofit PM 12: Wet end dewatering improvement + vacuum system optimization PM 12: Dryer section mechanical drive rebuild Couch roll dryness 21.5%, before top couch roll 10% The 2-sigma CD variation improved by at least 20% 1% dewatering increase Better runnability Vibration velocity not exceeding 2.8 mm/s Lower maintenance costs 16

Summary

Summary Shanying International is a fast growing company undergoing capacity expansion and intelligent management development, aims to become an environmentally friendly and sustainable global company Shanying International and Valmet are strengthening their shared roadmap partnership through transparent communication innovative cooperation win-win development With the latest technologies and digital services, Zhejiang Shanying is aiming for benchmark levels in the machine runnability, efficiency, and quality Shanying International will promote closer relationship with Valmet in all locations 18