ENVIRONMENTAL performance in 2012

UPM Changshu

UPM in Changshu

UPM Changshu Paper Mill, ENVIRONMENTAL PERFORMANCE IN 2012

UPM Changshu paper mill, a subsidiary of UPM-Kymmene Corporation, is situ-ated at Changshu Economic & Technological Development Zone against south bank of Yangtze River, approximately 90 km west of Shanghai.

The mill has two paper machine (PM) lines. PM1 produces wood-free uncoated paper only while PM2 makes mainly wood-free coated paper and partly uncoated paper as well. The mill is also equipped with auxiliary facilities includ-ing a 100MW power plant, a 26,400m3/d effluent treatment plant, a process water plant and an in-house jetty.

Environmental protection is one priority in the daily activities at UPM Changshu paper mill. The mill has been paying special attentions to the environmental pro-tection to minimize the impact on the environment by mill’s operation. Our goal is to continuously maintain ourselves as one of the best performers in environ-mental protection in the region.

This report summarizes the environmental achievements of year 2012 as well as the focusing areas for the coming year 2013. The scope of the report covers UPM Changshu paper mill as well as the activities of UPM Asia Research Cen-tre that is merged into paper mill in 2012, but does not include UPM Raflatac Changshu plant, which is located in the same site.

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and Pulp, Paper, and Engineered materials. The Group employs around 22,000 people and it has production plants in 17 countries. UPM’s annual sales exceed EUR 10 billion. UPM’s shares are listed on the Helsinki stock exchange.UPM – The Biofore Company- www.upm.com

UPM Changshu paper mill Environmental Performance 2012 is a supplement to the Corporate Environmental Statement of UPM’s pulp and paper mills (available at www.upm.com) and provides mill-specific environmental performance data and trends for the year2012. The annually updated mill supplements and the UPM Corporate Environmental Statement together form the joint EMAS Statement of UPM Corporation. The next Corporate Environmental Statement and also this supplement will be published in 2014.

Production capacity 800,000 tonnes of wood-free uncoated and coated paper

Personnel 647 employees (excluding global function)

Products Graphic Paper Products: UPM Finesse Classic Matt UPM Finesse Classic Gloss UPM Fine

Office Paper Products: UPM Jetset UPM Copykid UPM Yes Future UPM Office

Certificates Environmental Management System ISO14001 Quality Management System ISO9001Occupational Health and Safety Management System OHSAS18001Certificate for Measurement Assurance ISO10012FSC Chain of Custody, SGS-COC-002249PEFC Chain of Custody, SGS-PEFC/COC-0941The certificates can be found at www.upm.com > Responsibility > Principles and Performance > Certificate Finder.

Environmental labels China Green Labelling for copy paper Cert. No.: 05508P1054001R1M

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UPM Changshu Paper Mill, ENVIRONMENTAL PERFORMANCE IN 2012

Environmental year 2012

Clean Run secures good performanceUPM Group launched Clean Run Cam-paign, a three-year program aiming to sig-nificantly improve group’s overall environ-mental performance, at all paper mills in 2012. In response to group arrangement, Clean Run was kicked-off by mill manage-ment at UPM Changshu paper mill in early spring 2012. The activities of Clean Run include training, auditing, key risk identifi-cation, corrective action planning, devia-tion reporting and follow-up.

2012 resultsClean Run activities above mentioned have significantly improved the mill envi-ronmental performance compared with year 2011 results. Boiler’s air emissions were kept within the permit limits. Solid wastes were handled properly. All indica-tors of waste water were below the per-mit limits with an exception of total nitro-gen concentration (TN). In the beginning of 2012, level of total nitrogen (TN) con-centration in waste water was found to grow higher and finally exceeding the limit few days every month. Reasons were not identified yet for this unexpected rise. But a technical team was soon formed and intensive trouble-shooting is on-going. The problem is expected to be fixed in early 2013.

Most of the mill environmental parameters are within the optimum ranges indicated in Best Available Techniques (EU BAT BREF 2001). For the electricity consump-tion however there is still place for further improvement.

Annual environmental dialog with sur-rounding village representatives was held in late 2012. There was not any environ-mental related complaint received from either villages, or from other stakeholders.

UPM Changshu paper mill was awarded as one of 2012 Green Enterprise by city government.

Environmental monitoringThe following environmental monitoring activities are carried out in the mill area• Bimonthly test of Yangtze River water nearby the mill by Changshu Water Bureau• Measurement of mill waste water – flow, pH, COD and NH4-N: continu-

ously by on-line meter – pH, COD, TSS, BOD5, P, N, NH4-N: daily by mill laboratory – all parameters: annually or biannually by third party upon mill request – quarterly sampling by authority without pre-informing• Air (mill boiler stack) – SO2, NOx, CO and dust: continu- ously measurement – Sampling of SO2, NOx and dust: annually by third party• Continuous measurement of air quality in Changshu city centre by authority • Annual test of mill border noise by third party

Timo Johansson, General Manager Jin Lisheng, Environment Manager

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UPM Changshu Paper Mill, ENVIRONMENTAL PERFORMANCE IN 2012

Air Water

UPM Changshu power plant is a com-bined heat and power (CHP) plant. It is equipped with two main coal boilers rated at 241t/h each and four small gas (or light oil) boilers rated at 56(41) t/h each. Power plant produces all steam and most of electricity for paper produc-tion. In case there is a shortage of elec-tricity, it will be purchased from national grid. The small boilers are used seldom to produce steam only during main boil-ers overhauls.

Boiler flue-gas is treated by dry desulfuri-zation system and electrostatic precipita-tors (ESP). The limits of both the quantity and the concentration of the air pollutants of an industrial enterprise is mandatorily specified by the local or national authori-ties (quantity: by local permit; concentra-tion: by “Emission Standard of Air Pollut-ants for Thermal Power Plants”, national standard code GB13223-2003).

Water used for paper production process is taken from and sent back after treat-ment to the Yangtze River.

For the waste water treatment plant (WWTP) process, we have been focus-ing on the communication and co-oper-ations between paper machine opera-tors and the WWTP operators, to ensure a smooth handling of discharges from paper machine lines all the time. In gen-eral, WWTP was running good over the year 2012. However, the total nitro-gen (TN) in the waste water was getting high and for some days exceeded the limit in 2012. We reported this devia-tion to local authority timely. Unfortunately the consequent corrective actions made in 2012 were not helpful. Technical study by experts for the TN issue is on-going.

A half-million euro investment was approved and under implementation for

FOSSIL CARBON DIOXIDE, CO2

1,000 t/a

SULPHUR DIOXIDE, SO2

t/a

BIOLOGICAL OXYGEN DEMAND, BOD5

t/d

NITROGEN OXIDES, NOx

t NO2/a

DUST

t/a

TOTAL NITROGEN, TN

kg/d

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Quantity Permits 2012

Sulphur dioxide, SO2 3,328 t/aDust 554 t/aNitrogen oxides, NOx not defined

Concentration Permit Limit GB13223-2003 (hour average)

Sulphur dioxide, SO2 400*/1,200 mg/nm3

Dust 100 mg/nm3

Nitrogen oxides, NOx 650 mg/nm3

*local government limit

Remark1: Above measurements are done according to Chinese standards, they might not be comparable to ISO standards.Remark2: NOx are monitored by measuring NO and calculated into NO2

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UPM Changshu Paper Mill, ENVIRONMENTAL PERFORMANCE IN 2012

the modification of coating colour recov-ery system, targeting to significantly reduce the amount of waste coating col-our to the WWTP as well as to the land-fill.

The limits of both the quantity and the concentration of the water pollutants of an industrial enterprise is mandatorily

specified by the local or national author-ities (quantity: by local permit; concen-tration: by table 3 in “Discharge Stand-ard of Water Pollutants for Pulp & Paper Industry”, standard code GB3544-2008. Table 3 is the strictest limit that is only applicable to Tai-lake basin, an area of 36,900 square kilo meters within Yang-tze River delta in China).

Waste

Mill solid wastes mainly include boiler ashes, waste packing, among which ashes and waste packing are 100 per cent reused, and effluent sludge is burnt off in the boilers as bio-fuel after dewa-tering. In Addition, there are non-recycla-ble industrial waste and household waste disposed by landfill. There is also a small amount of hazardous wastes which were treated by the qualified environmental companies in compliance with the rele-vant laws and regulations.

The total mill waste amount in 2012 was increased by 7% compared with year 2011 mainly because more boiler ash produced. But the landfill and hazardous wastes were less than last year’s figure.

Landfill site is located 10 km south-east of the mill. The site is owned and operated by Changshu city government.

CHEMICAL OXYGEN DEMAND, COD

t/d

TOTAL SUSPENDED SOLIDS, TSS

t/d

PHOSPHORUS, P

kg/d

ADSORBABLE ORGANIC HALOGEN COMPOUNDS, AOX kg/d

SOLID WASTE

BD t/a

Remark3: The weights included in the figure are dry weights. Effluent sludge is incinerated in mill boilers as biofuel so it is excluded from waste statistics.

Ash for re-use

Other recycling wastes

Landfill

Hazardous wastes

Permit limit

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Quantity Permit 2012

Chemical oxygen demand, CODcr 834.0 t/aTotal suspended solid, TSS 166.7 t/aAmmonia nitrogen, NH4-N 83.3 t/aTotal nitrogen, TP not definedTotal phosphorus, TP 8.3 t/a

Concentration Limit GB3544-2008 (daily average mg/l)

Item Permit Limit 2012 mill peakCODcr 50 44.0TSS 10 9.0NH4-N 5 3.3TN 10 16.0TP 0.5 0.3

Remark1: Above measurements are done according to Chinese standards, they might not be comparable to ISO standards.Remark2: Daily permit values are calculated from annual permit.

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UPM Changshu Paper Mill, ENVIRONMENTAL PERFORMANCE IN 2012

Environmental parameters 2012

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.

* Dry weight

Production capacity Woodfree uncoated paperWoodfree coated paper

450,000 t350,000 t

Raw materials and additives

PulpFillers and coating pigmentsChemicals for paper productionOther

See UPM Corporate Environmental Statement for more information

Energy Fossil and biogenic fuelsPurchased power

Fossil 99%, biogenic 1%See UPM Corporate Environmental Statement for more information

Emissions to air ParticulatesSulphur dioxide, as SO2

Nitrogen oxide, as NO2

Carbon dioxide, as CO2 (fossil)

88 t874 t719 t877,900 t

Water intake Process and cooling waterMunicipal water

7,850,000 m³36,300 m³

Discharges to water Clean cooling waterProcess effluent volumeBOD5

CODcrSolidsPhosphorus, PNitrogen, N

234,000 m³4,487,000 m³11.2 t145.0 t10.1 t0.1 t34.6 t

Waste to landfill * Domestic and construction wasteCoating colour sludge

641 t153 t

Waste to re-use *

Hazardous waste

Boiler ashesWood wasteWaste paper and boardMetalsOther recycling wastes

107,600 t448 t1,960 t1,520 t118 t

115 t

Size of mill area 184.5 ha

Huangfu Xiaofeng , PM1 machine tender

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UPM Changshu Paper Mill, ENVIRONMENTAL PERFORMANCE IN 2012

TARGETS AND MEASURES DEADLINE DEPARTMENT(S) RESPONSIBLE

Environmental deviations– Category 5= 0 case – Category 4= 0 case – Category 3≤ 1 caseTo further improve employees environmental awareness by refreshment training and communication; to identify key risks by audit and make preventive action plans; to follow up the corrective actions

31.12.201331.12.201331.12.2013

Environmental manager

Emissions to the water– CODcr concentration ≤35mg/l– CODcr discharging amount ≤13t/month– High total nitrogen (TN) content problem to be resolvedTo establish the written procedure for the communications between paper machines and WWTP operators; to make study on total nitrogen (TN) issue and solution proposal for the high total nitrogen issue.

31.12.201331.12.201330.06.2013

Water superintendent

Water saving target– PM1 ≤ 5.1 m3/t.paper– PM2 ≤ 6.0 m3/t.paperTo make further study for the white water recycling and maximize the use of white water

31.12.201331.12.2013

PM1 production managerPM2 production manager

TARGET ACHIEVEMENT COMMENTS

Environmental Deviations– Category 5(*) = zero case– Category 4(*) = zero case– Category 3(*)≤ 2 cases

YesYesYes

Actual is 0Actual is 0Actual is 1, total nitrogen concentration exceeding permit limit

Emissions to the water– CODcr concentration ≤35mg/l– CODcr discharging amount ≤13.5t/month– TSS concentration ≤5mg/l– TSS discharging amount ≤3.2t/month

YesYesYesYes

Actual was 32.3mg/lActual was 12.1t/monthActual was 2.3 mg/lActual was 0.84t/month

Emissions to the air– SO2 concentration ≤280mg/ nm3

– Dust concentration ≤50 mg/nm3YesYes

Actual 266mg/ nm3

Actual 26mg/nm3

Performance against targets in 2012

Year 2013 targets

* UPM environmental deviations are categorized into 6 levels: Cat. 5= serious deviation; Cat. 4= significant deviation; Cat. 3= moderate deviation; Cat. 2= relatively minor deviation; Cat. 1= minor deviation; Cat. 0= environmental observation

VERIFICATION DECISION

As the accredited verifier, Inspecta Sertifiointi Oy (FI-V-0001) has audited the UPM Changshu paper mill

environmental management system, the Environmental Performance in 2012 report and the environmental

statement for 2012 for UPM paper and pulp mills. On the basis of this audit, it was stated on 2013-05-14

that Environmental Management System of UPM Changshu paper mill, this environmental performance in

2012 report and the information regarding UPM Changshu paper mill in the Environmental Statement 2012

of UPM’s paper and pulp mills comply with the requirements of the EU’s EMAS Regulation (EC) No.

1221/2009.

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www.upm.com/cn

UPM (China) Co., Ltd.

No. 2 Xingye Road, Changshu Economic and Technological Development Zone, Jiangsu Province,China 215536Tel. +86 512 5265 1818Fax +86 512 5265 2300

For further information, please contact:Jin LishengEnvironment ManagerTel. +86 512 5229 5066Jin.lisheng@upm.com

Jackie BaoCommunications managerTel. +86 512 5229 5225Bao.jinfen@upm.com Pr

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