kemira stakeholder magazine 2/2010 digging ......since 1991, the stockholm international water...

2 | 2010 waterlink 1

K E M I R A S T A K E H O L D E R M A G A Z I N E 2 / 2 0 1 0

SWEET brings water

research to a new level – globally

iS ThE bluE planET

going dry?P.S. Asian

giants invest in water

Oil & Mining has potential

digging dEEpEr To riSE highEr

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waterlink 2 | 20102

26

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12

Jump aboard Asia’s water management trend!

4 LINK ITThe latest news from Kemira.

11 ProfILe“And the 2010 Stockholm Water Prize goes to…”

12 WhaT’s uP WITh WaTer scarcITy?The blue planet is not running out of water,

but clean water is increasingly scarce. What

are the newest solutions to the problem?

19 INdusTry Needs cLeaN WaTer, Too…not just agriculture and societies.

Kemira is here to help. 20 dIggINg deeP for The besT soLuTIoNsAn interview with Randy Owens, leader

of Kemira’s Oil & Mining segment.

24 urbaN chaLLeNges, urbaN soLuTIoNsKemira is in tune with Shanghai

World Expo 2010.

26 asIaN gIaNTs face massIve WaTer ProjecTs China and India are stepping up when

it comes to water management.

31 coLumN Megacities mean mega-challenges for

wastewater and drinking water systems.

32 (NeT)WorKINg for WaTer exPerTIse Kemira has intiated a new institution,

gathering the highest available research

on water chemistry.

36 TeN soccerfIeLds of cardboardA full-service solution for Kemira’s

papermaking customer.

38 NumbersKemira’s key figures and share

price development.

42 amaZINgTasty bread in tropical temperatures.

Fresh water, juicy fruit!

Skimpy FennoDose makes happy

paper machines.

CONTENTS

42

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There is a true global concern about our water usage. However, the availability of water in different areas varies greatly, which dictates

usage boundaries. In some regions of the world, there is little or

no water available for use (the quantity challenge). Elsewhere the water available can be inadequate (the quality challenge). Finally, we have regions with all necessary water resources required for par-ticular purposes. In all cases, efficient use and reuse of water is essential; but very different approaches are required depending on location and purpose.

When dealing with the efficiency of water-intensive industries, it does not necessarily suggest that the use of water should be restricted. Yet it means that we aim at reducing the harmful environmental impact. What could this imply? Increased reuse or recirculation of water means that less water intake is needed, which is impor-tant when ground water is the main source or little clean water is available. On the other hand, the discharge of water from processes should ultimately have no nega-tive impact on the environment.

Water management is not new to Kemira. But in recent years, we have set our focus on serving water-intensive industries. As one action to reach our strategic goal, we have established a cooperation around water efficiency: the Center of Water Efficiency Excellence (SWEET). The activities of this network strengthen our competence in new water treatment technologies and water-intensive value chains based on biomasses. The guideline throughout this action is to prepare us for doing more with less water.

Johan Grön Executive Vice President of R&D and Technology

ALL ABOUT WATER!

WaterLink is a magazine for Kemira’s stakeholders, published in Finnish and English four times a year.

PUBLISHER Kemira Oyj www.kemira.com

Editor in Chief marie Lundgren tel. +46 42 17 11 19

PRODUCTIONSanoma Magazines Finland Custom Publishingwww.sanomamagazines.fi

Producer Kati heikinheimo Layout suvi-Tuuli junttila and marjukka Löytönen

PRINTED BYForssan Kirjapaino Oy ISSN 1797-7738

PAPER

This magazine is printed on Galerie Art Silk 115 and 200 g/m2.

Cover and back cover photo: Susanna Kekkonen

Please send your feedback to [email protected]

subscriptions and changes of address can be made at:

www.kemira.com/media

ED ITOR IAL

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L INK I T

TruLy cLeaN chemIsTry aT The NorTh seaTeXT Minna Valtari | PhoTo istockphoto

K emira’s biodegradable scale inhibitors were recently yellow banded for use at the North Sea Norwegian sector.

In other words, KemEguard products have passed strict environmental regulations: they have been rated environmentally acceptable and have passed biodegradation, bioaccumulation and toxicity requirements.

One of the four KemEguard products is based on Kemira’s unique scale inhibitor chemistry for barium sulfate, which has been used for over 15 years for this most difficult and predominant scale in the North Sea.

“This technology is highly effective under the conditions encountered,” says Katarzyna Millan, Global Product Manager at Kemira’s Oil & Mining segment.

Kemira is committed to helping its customers minimize their environmental impact. In the North Sea area, one of the challenges in the oil production is scale formation that can plug pipelines and halt production. Kemira’s technology meets these needs to prevent scale formation. Kemira is looking to grow in this field since scale formation is also a frequent concern in metal and mining processes.

“In the future, the need to control scale will become more important as third world countries become industrialized and move towards urbanization,” says Millan.

Also, the need for more efficient recycling of water is a growing global trend.

As existing sources age, the oil and mining industries are looking into more demanding locations, such as oil reserves very deep under the seabed. Thus, there will be a greater demand for scale inhibitors to function in unusual and harsh conditions. This promises new business opportunities for Kemira. n

Kemira’s biodegradable scale inhibitors have been rated environmentally benign.

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52 | 2010 waterlink

the oil drilling conditions at the north sea are extremely demanding.

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L INK I T

1. Kemira was established 90 years ago to

find a solution to the food shortage in

finland. now, the company seeKs to solve

water shortage problems. are these two

purposes connected in any way?

Kemira was established as the State Sulphuric Acid and Superphosphate Plants in 1920, when the country was threatened by famine. The government invested in fertilizer manufacturing to increase crop yields.

There is a connection: our business continues to be based on finding solutions to pressing problems. Today, however, these problems are broader – global rather than local. Water also presents more demanding challenges because the trends in climate change and consumption are progressing in the wrong direction. We need completely new solutions to ensure the availability of clean water.

2. how has innovation at Kemira

changed over the past 90 years? Kemira has always aimed at constant renewal. One of the greatest changes in recent times has been the transformation of our activities from national and international to global. Kemira’s research and development is now centralized into five centers located in Finland, Germany, United States, China, and in the course of a year, Brazil.

Our R&D has also gained a wider scope. In our development projects we

are better able to take advantage of all of Kemira’s product and service platform and partner networks. Different functions are involved with product development from the get-go.

3. innovation today involves networKs

that include many nations and several

types of organizations. what does this

add to and require of research and

development?

Networks offer a great deal of new opportunities, allowing us to make better use of our expertise. Kemira files more than 100 invention disclosures every year. These come from over ten countries – and not only from those with the largest research centers. These inventions are related to customers’ needs rather than our production processes. Of course, network-based innovation is not entirely without shortcomings. Major challenges include filtering the incredible amount of information produced by open networks.

+1 what is your Key goal for innovation?

I hope Kemira will increasingly be known as a leading water chemistry expert because of our inventions. Ensuring the availability of clean water requires a great deal of innovation, which continues to be our focus. Instead of merely following trends, a successful company needs to evolve constantly. n

3+1 QUESTIONS KEmIra cELEbraTES 90 yEarS Of INNOvaTION IN 2010. OvEr ThE yEarS,

ThE cOmpaNy haS dEvELOpEd frOm a fErTILIzEr maNUfacTUrEr INTO

a LEadINg waTEr chEmISTry ExpErT.

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this coming September, Stockholm will again host the annual World Water Week, bringing together leaders and experts from around the world to address significant global water-related issues.

Since 1991, the Stockholm International Water Institute (SIWI) has organized and directed World Water Week, which boasts a comprehensive agenda of events such as workshops, seminars, prize ceremonies and field trips where the brightest and most influential minds can exchange, challenge, and brainstorm ideas on how to tackle the water and development challenges facing the

world today. This year, focus is on the theme “The Water Quality Challenge”, which fits perfectly within the broader 2009-2012 niche of “Responding to Global Changes”.

An important part of the World Water Week’s proceedings is the presentation of the Stockholm Water Prize, the world’s most prestigious prize for outstanding achievement in water-related issues. The award, founded in 1991 by various international companies, Kemira Water among them, includes a EUR 121,000 award. See page 11 to read who the laureate of this year’s Stockholm Water Prize is. n

QUaLITy cOmES fIrST aT wOrLd waTEr wEEK

this past spring, Finland was in search of innovative ideas on how to boost its national image in a competition named “A Mission for Finland”. Hundreds of ideas were submitted. Internet votes and a panel lead by Shell and Nokia president Jorma Ollila declared a concept entitled “Promoting Finland Through Water Know-how” the clear winner. This winning concept is rooted in the Center of Water Efficiency Excellence (SWEET) founded by Kemira Oyj and VTT, the Technical Research Centre of Finland. SWEET’s mission is to tackle and solve significant global water problems by, for example, developing new environmental technology and creating environmentally sustainable and energy efficient solutions. In essence, SWEET represents top Finnish water know-how and, therefore, holds the key not only to solving important environmental issues but also to boosting Finland’s image to new heights. n

Read more about the SWEET Research Center on page 32.

waTEr KNOw-hOw wINS

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L INK I T

8 waterlink 2 | 2010

Kemira aims to determine water footprints for its key products after the standardization process is completed. The company has already begun calculating these water footprints by determining process water balance. Simultaneously, Kemira is exploring whether it can further enhance its already efficient water recycling.

Kemira’s water footprint can also be evaluated by determining how much water is treated with the company’s products. Kemira’s wastewater loading has decreased sharply, while the use of Kemira’s products to treat water has increased rapidly. In other words, Kemira has reduced its own water footprint and that of its customers.

The water footprint is a method of determining total use, indicating how much water a person, company or an entire nation consumes. The ISO working group is expected to complete the guidelines for calculating water footprints by 2011. Although not yet

a clear indicator, the water footprint helps us understand how our choices affect water balance. n

Calcute your own water footprint at www.waterfootprintkemira.com

ShrINK ThE fOOTprINT!

EUr 25 000 000 000

mEET US ON ThE rOad June 9–10 chemspec, berlin, germany

June 16–18 asian paper 2010, bangkok

June 20–24 awwa annual conference and exposition

ace 10, chicago

July 8–10 indo livestock, Jakarta, indonesia

aug 10–12 fenasan, são paulo, brazil

aug 23–24 informex latin america, são paulo, brazil

aug 31–sept 3 fenasucro, são paulo, brazil

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IN SHORT

2009 environmental

report published

Kemira’s environmental report for 2009

was published on world water day,

march 22nd, in english and in finnish. the

electronic report is available on Kemira’s

website, www.kemira.com ➝ media ➝

publications ➝ environmental report.

the printed version can be ordered

from Kemira’s website, www.kemira.

com ➝ media ➝ publications ➝ order

publications.

Kemira sold its KoKKola

sulphuric acid plant to boliden

KoKKola oy

Kemira has sold its sulphuric acid plant

in Kokkola, finland, to boliden Kokkola

oy. the business and a staff of about

20 persons were transferred to boliden

Kokkola on may 1, 2010. Kemira

continues chemical terminal operations

in Kokkola including services to boliden

Kokkola oy.

the transaction does not have any

significant impact on either company’s

financial figures, and the parties have

agreed not to disclose the transaction price.

sulphur dioxide is a by-product in

the production of zinc, and it is refined

into sulphuric acid for several industrial

purposes. so far, boliden Kokkola has

sold sulphur dioxide gas to Kemira, and

Kemira has refined it to sulphuric acid.

the production capacity of the Kokkola

sulphuric acid plant is approximately

300 000 tons per year. n

92 | 2010 waterlink

EUr 25 000 000 000 Value of the global chemical market related to water treatment, process efficiency and stability in water-intensive industries (Kemira estimate).

bLaNKOphOr prOdUcT fOrmULa chaNgEdKemira blanKophor fluorescent whitening agent (FWA) product formula containing small quantities of preserving biocide has changed. Blankophor urea- and carrier-free product formulations are now manufactured with Kemira Fennocide BZ 26 D biocide. This replaces currently used biocides that have been sourced externally due to different regional requirements.

“Kemira has broad in-house biocide knowledge, thus, the decision to change the formula to contain Fennocide BZ 26 D was very welcome”, says Christiane Sloan, product line manager FWA. “We are one of the key pulp and paper industry chemical suppliers specializing in water-intensive processes and our product portfolio covers a wide range of biocides that are specifically designed to kill and inhibit the growth of troublesome microbes typically found in paper manufacturing conditions”, she continues.

Prior to the change of biocides, extensive tests and long-term trials were carried out to ensure that this would not have any impact on Blankophor product quality, effectiveness or specification. The new formulations can be mixed with existing inventories of the current formulations without concerns. They are marketable world-wide. n

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3 facTS ON caNada:

• population: 33.5 million

• total area: 9,984,670 sq km

• neighboring country: united

states

source: cia world factbook

caNada waTErwOrKS

what comes to mind when we think of Canada? Hockey (played on frozen freshwater), rivers and lakes and of course maple syrup (fresh water with natural sugar). Canada is truly a land rich in freshwater! The country holds a large portion of the planet’s accessible freshwater; roughly three billion cubic meters. In a world suffering of water scarcity, this is a strategic resource.

Abundant fresh water has been used to drive water intensive industries such as pulp and paper and mining. This is where Kemira has found a useful role in improving the water quality and quantities consumed in Canadian industry.

Kemira Canada has approximately 230 employees and multiple production units. Roughly 60 percent of sales comes from the Paper segment, 30 percent from Municipal & Industrial and 10 percent from Oil & Mining.

Demand for Canadian commodities, including water, increases with the growth of the global economy. Kemira is well positioned to assist Canadian clients meet their challenges. n

L INK I T

“this is an opportunity to make a global difference. I would like to see everyone at Kemira take an interest in further develop-ing water expertise,” says Leena Lie, who was appointed vice president of Marketing & Communications in March, 2010.

Her favorite projects include Kemira’s and VTT’s joint Center of Water Efficiency Excellence (SWEET). This project aims to create new top expertise in water technology related to using biomass from wastewater treatment to produce energy and producing fresh water from seawater, to name but a few examples.

The SWEET Project is steered from Finland, but the network is global. All of Kemira’s research centers collaborate with universities and other organizations. SWEET warmly welcomes new business partners to widen the perspective into other areas of water treatment, measuring and monitoring, for example.

Leena Lie faces challenges as big as the globe. Kemira’s visibility needs to be enhanced, especially in Asia and

South America, where the company will open a new research center in late 2010. Moreover, Kemira contributes to Finland’s pavilion at the 2010 World Expo in Shanghai. In internal communications, implementing Kemira’s new values is the most important project.

Fortunately, Lie does not need to go it alone. One of the key tasks of communications and marketing at Kemira is to provide the business with useful tools, globally. In employee communication, for example, success depends more on supervisors than on the corporate communications level. This, in turn, calls for enthusiasm and an open mind-set – from supervisors and from everyone else.

According to Lie, we should let ourselves be fascinated by our work: “We should all actively seek new approaches and perspectives.”n

Read more about theSWEET Research Center, p. 32Shanghai Expo 2010, p. 24

SwEET chaLLENgES

JUh

a Sa

LmIN

EN


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dr. Rita Colwell is one of the most influential voices in science, technology and policy associated with water and health. A professor from the University

of Maryland and Johns Hopkins University’s Bloomberg School of Public Health in the United States, Dr. Colwell has worked at length to spread water safety education and viable, low-cost technological innovations in South Asia and Africa.

During the 1990’s cholera pandemic in Latin America, she worked as a national advisor for several governments. Additionally, she has authored or co-authored 17 books and more than 700 scientific publications. In other words, she has spent her life researching ways to prevent waterborne infectious diseases.

Dr. Colwell became interested in the research on waterborne infectious diseases during her stay in India and Bangladesh, where she witnessed the ravages caused by cholera epidemics. This became a strong motivator to seek ways to prevent these outbreaks. One of the biggest breakthroughs was translating scientific information into a simple practical solution: teaching people in cholera-infested areas how to filter their drinking water in order to make it safe to use.

In 2010, Dr. Colwell receives of the Stockholm Water Prize for her efforts in solving water-related public health problems. The Stockholm Water Prize is a global award presented annually by the Stockholm International Water Institute. Dr. Colwell remembers well what terrible criticism her research project faced in the early 1970s. She now sees the 2010 Stockholm Water Prize as a reward for believing in the possibility to prevent cholera. n

brINgINg waTErbOrNE dISEaSES TO a haLT

TExT minna valtari | phOTO John t. consoli

prOf I LE

This year’s Stockholm Water Prize Laureate works on saving lives with high-tech, low-cost innovations.

Dr. Colwell still remembers the criticism her research first faced.

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Of all the water on Earth, only 2.5 percent is freshwater. Of that freshwater, less than 1 percent is readily accessible by humans. The rest is locked up in ice and snow or underground.

waterlink 2 | 201012

20621070.indd 12 27.5.2010 14:50:56

»

From space, Earth appears blue because over 70 percent of its surface is covered with water. Yet today we struggle to meet our water needs.tEXt RandEl WElls | PHOtOS GETTY IMaGEs AND IsTOCKPHOTO

tHE

bluE PlANEt gONE Dry?

Water has long been taken for granted. It is all around us, falling from the sky, flowing in our

rivers, lying in the sea. How could we possibly run out? Perceptions can be deceiving. There is so much of water on Earth, but only a minute fraction is readily available for human consumption. Given the worldwide march towards industrialization, compounded with the ensuing pressures of climate change, the growing scarcity of water is a concern no society can ignore.

“It is a fact that demand is exceeding supply in many different areas,” says

Anthony Fane, director of the Singapore Membrane Technology Centre at Nanyang Technical University (NTU). “We’ve got a real challenge with our infrastructure in terms of water supply and wastewater disposal. The higher probability of new climate conditions further compounds the problem.”

An additional problem is the non-uniform distribution of water, both in terms of space and time, adds Chuyang Tang, assistant professor of environmental engineering at NTU. Meeting the water needs of, say, the cities of Palm Springs or Phoenix in the United States, both large cities in arid climates, is extremely difficult. Equally


20621070.indd 13 27.5.2010 14:50:57

challenging is delivering enough water of the right quality for vital industries like power generation.

“Water overall has somehow been neglected as a strategic raw material both by industry and by people,” says Johan Grön, executive vice president of Kemira R & D and Technology. “It has been treated simply as a utility that is always around, rather than as a strategic resource. It really should have been treated as a raw material all along that is strategically very important, especially to industry.”

Is WaTER REallY sCaRCE?Water does not actually disappear when we use it. It is not like oil which, once burned, is gone for good. The water challenge deals primarily with the availability of freshwater. Water that can be used directly for industrial processes or that is potable is becoming scarce. Both surface and groundwater sources are dwindling.

There is no crisis per se; it is more a change in the situation.

“We need to take care of this raw material and handle it in a proper way,” says Grön.

Water treatment is now needed where it was not necessary to the same extent before. More efficient technologies are essential to treat water at increasingly lower costs. New processes are also required to reuse water and further reduce the demand for new freshwater.

IndusTRY’s OPPORTunITYWhile our lifestyles and day-to-day expectations are closely connected to industry, changing the behavior of a population is a much longer process than changing a particular industry sector.

“If you want to make a big impact over the short term,” says Grön, “making industry more water efficient is the quick win.”

Many sectors use large volumes of water. Agriculture, oil, mining and

paper are just some examples. While the water consumption is high in these and many other industries, there are readily applicable technologies that support efficient use and reuse of water. The necessary understanding needed to implement improvements comes through water chemistry know-how and industry-specific insight.

“Now it is quite evident that looking at equipment alone will not achieve the efficiencies needed in the future. Proactive means are necessary to reduce usage in a more efficient way, like integrating equipment, chemistry and process diagnostics, and using more sophisticated process monitoring,” says Grön.

The efficiency targets and energy constraints of industrial processes demand a holistic approach.

nOvEl dEsalTInG TECHnIquEsManaging water demand is one way to avoid water shortage.

“Water authorities are working hard to reduce the needs for water, particularly in urban populations,” says Anthony Fane. Where demand can no longer be reduced, technology must be used to increase supply.

“We have two essentially infinite supplies of water: wastewater and seawater. Reuse and desalination are the two major methods we can turn to for additional water.”

In Australia, all major cities have, or are building, significant desalination plants to supplement their freshwater supplies.

“Five years ago none of them had such plants. They have increased tenfold the amount of water processed via desalination,” notes Fane.

Thermal distillation was once the main method for desalination. But this process required a great deal of energy. Today, less energy-intensive membrane technology has taken over thermal processing in most areas of the world.

The energy needed for desalting using membranes has come down by a factor »

• •

• There is an abundance of water

on the Earth, but only a minute

fraction of it is readily available for

human consumption. Therefore,

the scarcity problem concerns

fresh water that is potable or clean

enough for industry’s use.

• Many sectors use large volumes of

water. agriculture, oil, mining and

paper are just some examples. and

communities, of course. They can all

benefit of chemical products that help

decrease water use.

• In areas lacking sufficient water sources,

the main techniques to produce fresh

water are desalination and transforming

wastewater into high-quality potable

water.

• By combining technologies such

as membranes and chemical

treatment, new ways can be found

to improve water quality and

management.

30 seconds


20621070.indd 14 27.5.2010 14:51:02

“xxxxxxxx xxxxxxxx xxxxxxxx xxxxxxxxxxx xxxxxxxx”

” We have two essentially infinite supplies of water: wastewater and seawater.”


20621070.indd 15 27.5.2010 14:51:04

half of the energy is needed to convert wastewater to potable quality or industrial quality water compared to what is required for seawater desalting.

There are interesting energy benefits from wastewater treatment in addition to being an overall less expensive solution. The only problem is the potable application.

“There is a natural reluctance by many people to think about drinking recycled water,” says Fane. “There’s a lot of debate around the world on its safety. However, I can assure you that the quality of this water is much better than that of the German Rhein, the American Mississippi, and many major rivers that are used as sources for drinking water.”

“Increasingly, we are looking for water reuse,” Tang concurs. “For example, Singapore is an island country with limited water resources. Wastewater reclamation plays a vital role in meeting the water demand in Singapore. In addition, seawater desalination is likely to play an ever more important role in many arid regions.”

Singapore has accepted the reality of water reuse in its new water processes.

of three over the last 15–20 years. Much of that is brought about by clever reuse of water pressure, energy recovering devices, and improvements in the membranes themselves. This has also helped reduce the cost of desalination technology.

THE EasIER alTERnaTIvEReuse of wastewater has also become a more acceptable alternative to natural water supplies. Here, too, membranes have played a key role. Transforming wastewater into high-quality potable water is actually much easier and more cost-effective than desalination. The water from wastewater treatment plants and municipalities is already of reasonably good quality. About one-third to one-

The quality of reused wastewater is better than that of many natural water sources.

Agriculture accounts for around 70 percent of our total water consumption. Other industries account for 20–25 percent, while personal consumption accounts for about 5 percent.


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Wastewater is treated and, for the most part, sent to industry. About 10–15 percent goes to a drinking water reservoir where it is mixed with normal surface water and, further processed, eventually becomes part of Singapore’s drinking water supply.

IT’s aBOuT EnERGY, TOO“In sewage treatment, a promising prospect is recovering resources from sewage, such as water, energy, and nutrients. In particular, the biomass in sewage contains enough energy to potentially make sewage treatment energy-positive. Highly efficient separation of biomass and highly efficient anaerobic treatment are the keys,” notes Tang.

“Now is the time for integration of different tools to be able to take water treatment to another level,” says Grön. “This is not rocket science. We just need to leverage what we already have.”

Many things are coming into play for better water treatment. This includes combining controls, monitoring, sensors, and treatment methods. New research and development is adding more interesting new opportunities to this mix.

FuTuRE dEvElOPMEnTsThere is good reason to be optimistic about the future. Along with the raised awareness and sound technologies already available for better water management, promising new research and development is also underway. »

combining controls, monitoring, sensors, and treatment methods. New research and

about the future. Along with the raised

»


20621070.indd 17 27.5.2010 14:51:14

•

• 97.5 percent of water on Earth

is seawater

• 69 percent of freshwater is

locked in glaciers and snow packs

• 30 percent of freshwater

is below ground

• 0.3 percent of freshwater

is readily accessible

• China, India and the united states

consume the most water annually

n Key water f i gu res

Membrane technology is one key promising area. The main research areas focus on reducing the energy consumption of seawater desalination. Research is being carried out on novel membranes, such as carbon nanotube membranes, and on using alternative energy sources, such as waste heat utilization.

“The focus in wastewater reclamation is on the quantity and quality of the final product. For wastewater reclamation using membranes, an important issue is membrane fouling control,” says Tang. As membranes filter water, they eventually collect materials on the surface that require cleaning, a difficult and costly affair.

“We think companies like Kemira have chemistry that can help overcome these limitations,” says Fane. “That’s why we want to work with them to improve the membrane process,

lowering energy consumption and costs by using suitable pre-treatment and optimization.”

Fane is referring to the newly established Center of Water Efficiency Excellence (SWEET), a joint effort by Kemira and VTT (Technical Research Centre of Finland). The center’s purpose is to aggregate competence to intensify development in Finland, as well as in the network of experts around the world.

“By establishing this center, we aim to build upon the capabilities and technologies we have today. We will go into new areas and leverage technologies in new applications, treating water and biomass better than it has been done before,” says Grön.

By widening the scope of technologies, new opportunities can be more easily identified and developed. n

Read more about SWEET on page 32.


20621070.indd 18 27.5.2010 14:51:22

“there are two main external drivers concerning treatment of raw and wastewater for industries,” says

Hannu Virolainen, senior vice president for Kemira’s customer segment Industrial. “Firstt effluent limits are going down, meaning that when applying for a new environmental permit, it is almost without exception that the new permit is stricter in terms of what can be discharged than the previous one.”

The second main external driver is the global water crisis as a whole. Quality raw water is getting scarce for everyone. This means industries need to accept lower quality intake water, which, in turn, means they need to improve their treatment processes for raw water.

Internally, industries are also facing the fact that water treatment is not a core business or competence. Their water processes are not a source of profit, rather a cost item. Most industries are using outsourcing to minimize the cost of their water needs.

dECREasE THE WaTER-InTEnsITYMost industries today require water to a large degree. It is easy to identify the biggest users in terms of volume. But absolute volume is just one measure. To get the full picture, you also need to measure the amount of water needed

trEAtiNg WAtEr fOr iNDuStryAs water gets costly, industries are finding new ways to leverage efficiencies in quality intake.

per unit of output. Some small industries have very high intensity levels. As they grow, water use grows even more rapidly.

Industries can look to Kemira for answers to their water challenges.

“We have a very comprehensive product range for raw and wastewater treatment,” says Virolainen. “In addition, we have a lot of application knowledge across different industries in our sales and application team, as well as in R&D. If a customer has a problem, we’ll find the answer.”

Virolainen tells the story of a small producer of potato snacks. Their washing and peeling process is very water intensive. The city told them they must treat their wastewater because it accounts for 80 percent of the cleaning needs of the city. The customer was facing real difficulties to find a solution. Kemira is now running a development project to help them define a treatment process.

FInd PERFORManCE IMPROvEMEnTsAnother challenge for industry is to keep up with the rules and regulations regarding water.

“You need to take more and more out of the water,” says Virolainen. It used to be enough to just take out the biggest chunks. Now we are taking so much out of the water that, in some cases, the treated wastewater could be even cleaner than the raw water.”

New technologies will introduce better efficiency both in terms of performance and cost. Membranes, for example, are now on the radar for nearly all industry sectors.

“With a variety of ways and means, industries need to increase efficient water consumption, the use of recirculation loops, the ability to use municipal wastewater, and the ability to clean their own wastewater so that it can be reused,” says Virolainen. n

tEXt RandEl WElls | PHOtO IsTOCKPHOTO


20621070.indd 19 27.5.2010 14:51:23

INTERV IEW

Kemira’s Oil & Mining segment hit their stride right out of the starting blocks. With the right focus and the necessary investments, Kemira looks to stay ahead of the pack, says head of segment Randy Owens.

DIggINg DEEpER To RIsE hIghER

TEXT randel wells | phoTos sUsanna KeKKOnen


20621072.indd 20 27.5.2010 14:52:30

• after a good first year, Kemira’s Oil

& Mining segment aims to improve

profits and expand global offerings.

• significant efforts are being made

to establish a strong presence for

Kemira in key regions to better

understand and serve customers.

• water continues to be a critical

challenge for the oil and mining

industries, demanding new approaches

to control water usage and finding new

ways to alleviate pressure on freshwater

sources and the environment.

• new technology will play an

increasingly important role in the

rapidly changing oil and mining

industries.

30 seconds


20621072.indd 21 27.5.2010 14:52:32

t was no small task to bring together products and sales from two other segments into a completely new setting. Despite this, Kemira’s Oil & Mining segment has already come far

and is making big plans for the future. “We started with the transformation

from product-oriented sales to driving the business with a focus on the customers, and now we are going beyond that to be a leading technology player with these customers,” says Randy Owens, head of the segment.

sOlid fOOtingKemira has zeroed in on the extraction industries just in time. Water is a vital part of nearly every extraction method. As the quality of oil, gas and mineral deposits decreases, water usage increases even more. This ever growing demand is pushing the need for new ideas to better manage water usage and make more efficient use of available resources.

Getting close to customers in order to understand their particular challenges is a key strategy for Kemira’s Oil & Mining. Great customer care also requires innovation and immediacy in delivery, two other key components of the segment’s strategy.

“You must be able to translate global offerings to local needs plus keep the speed up and react to the high degree of change in the market,” says Owens. The aim is to leverage Kemira’s footprint in key regions to create a strong local presence and to facilitate customer intimacy. In South America, Kemira continues to boost its local presence and is studying how to speed up the approach. The same is being done in Russia and in the Asia and Pacific (APAC) region.

Based on the progress thus far, this approach is working well: “Last year we improved profitability despite the recession,” says Owens.

“As we increase our size, the challenge is to maintain our speed and flexibility because of the dynamics of the markets we operate in,” continues Owens. Moving into new applications and new regions is always a trial.

Vital ValUe-addWhen the Oil & Mining segment was created, the focus was on organizing and profitability. It was crucial to make sure everyone was aligned and headed in the same direction.

“More so now than in the past, the way forward – based on the challenges we see ahead – is major material innovation.”

Owens wants to move Kemira from being a niche player in the oil and mining industries to being a mainstream water chemistry player. Some companies are working on the basis of bulk volume, but Kemira’s target is to differentiate itself by bringing a clear value-add to the market. By striving for technology leadership, Kemira can find new ways to help customers meet their water challenges.

A holistic approach to the environment and a deep knowledge of water applications gives Kemira a unique position in the market. For example, KemEguard, a low molecular weight antiscalant, was awarded the Yellow Band Approval for the North Sea, Norwegian Sector. Here, Kemira has applied an advanced technology to an environmentally sensitive area, helping customers meet both their water needs and environmental regulations.

“We are not just saying we have a good, performing product,” remarks Owens. “We take it to the next level and make it environmentally sound as well, capitalizing on the opportunity to meet new customer requirements.”

targeted researchWater usage and environmental responsibility go hand-in-hand. Kemira is making targeted research for areas such as the tar sands region in Canada because of the water and environmental needs. The Canadian tar sands are one of the many research areas of the Center of Water Efficiency Excellence (SWEET), a research network co-established by Kemira.

There will be many projects for SWEET related to the extraction industries.

“A key area for us is sea water usage, and we are looking to the new research center for novel ideas on how to go forward.”

On the mining side, SWEET will help with new products for mine tailing and reduced water ore processing. With exciting new development underway, Kemira’s Oil & Mining is poised to capture growth. n

Read more about the KemEguard Yellow Band Approval on page 4 and the SWEET Research Center on page 32.

FINDINg ThE RIghT balaNcEthe Oil & Mining segment continues to press the importance of research and

development for its customer industries’ business and ensure that product

development connects and meets the needs of the customers. Becoming a leading

technology and applications provider is the goal. this can only be achieved by

switching from a product-centered to a customer-oriented way of thinking.

for Owens, these early times have demanded a real balancing act between internal and

customers needs. he aims to devote more and more of his attention to customers and to

observe changes in the market. On the internal side, it is a broad group of people he works with:

communications, research, manufacturing – just about everyone.

“that’s one of the interesting things in this position: seeing things come together in all

the various functions and disciplines when you are responsible for a business,” he notes.

Owens admits he spends maybe more time than he should on internal issues. given the size of

his segment and the size of his team, it is understandable. naturally, he would prefer to be spending

more time with the customers. customer communication can come in many forms, from being a

member of industry associations to simple face-to-face meetings. when he meets with customers,

he tries to speak with both senior executives as well as the engineers who are facing the challenges

in the field. this helps him get a good grasp on the wide range of needs each customer has.

I


20621072.indd 22 27.5.2010 14:52:32

Water is a vital part of nearly every extraction method.

• President of Kemira’s Oil & Mining

segment since 2008

• Born in 1964

EDucaTIoN• Bachelor of science in petroleum

engineering

• Masters in business administration

caREER hIsToRy• Kemira Oyj, Kemira Pulp&Paper, Vice

President, strategic Business Unit

additives, 2002–2008

• Vinings industries, Business Manager,

sales/Product Management//Marketing

Management, 1991–2002

• nalco chemicals, sales, 1987–1991

Randy owens


20621072.indd 23 27.5.2010 14:52:39


XXXX

The Shanghai expo 2010, which opened its doors at the

beginning of May, is the largest world exhibition to date

– if the organizers reach their goals.

The World expo looks impressive on paper: 192 nations

and 50 international organizations have confirmed their

participation in this 184-day mega-event in science,

technology and culture.

a total of 70 million people are expected to visit the

expo, which promises more than 20,000 presentations

and performances of different types. The budget totals

approximately eUR 3 million.

China, the host country, boasts the largest of the 95

pavilions in the expo. The construction, which resembles

an upside-down pyramid, reaches 69 meters high and is

expected to be visited by some 50,000 people each day.

in our era of fast connections and virtual realities, the idea

of a world exhibition may seem outdated and unnecessary.

Shanghai, however, offers a perfect location for such an event:

with its 20 million inhabitants, this rapidly growing megalopolis

is the quintessential platform for research into the future.

The subway system in Shanghai totals 400 kilometers

– longer than the subways in new York or Tokyo. over the past

two decades, a new skyscraper has been completed almost

every other day in Shanghai. The change has been rapid:

pudong, which was mostly cultivated land only two decades

ago, is now a thicket of skyscrapers.

Factbox: Shanghai Expo 2010

20621073.indd 24 27.5.2010 14:51:32


Shanghai, the host city of this year’s World Expo, is one the world’s largest urban areas. The Chinese government is building the Yangtze River

Delta into a display of modern China, for all the world to see.

With its 1.3 billion inhabitants, China has recorded historically high growth rates in recent years; for 2010, the prediction is approximately nine percent. This growth is manifested in the skyscrapers of Shanghai’s Pudong district and in the city’s incredible traffic and transportation options, to name but a few instances.

This is the first time the World Expo has an urban theme: Better City, Better Life. More than half of the world’s population lives in urban areas, and many of our future challenges will be urban ones.

The Shanghai World Expo explores urban development in, for example, the Urban Best Practices Area, which showcases 65 projects from around the world that focus on innovations for city living.

Urbanization has become a megatrend everywhere in the world. This same focus is reflected at the Shanghai World Expo 2010, where solutions for a better city life are presented. Contributing to a cleaner future in urban areas is also part of Kemira’s strategy.TeXT by alekSi kinnUnen | PHOTO iSToCkphoTo

THe wOrld SeekS urban SOluTiOnS

makes strong business sense. The company holds customer events in Finland’s pavilion in Shanghai.

“The World Expo is an excellent opportunity for Kemira to enhance its profile in China and Asia, which is a strategically important growth area. We want to strengthen our position in China, the fastest growing economy in the Asia-Pacific region, to reach global leadership in our field,” says Jin.

iMMenSe bUSineSS oppoRTUniTieSKemira helps customers in different sectors increase the efficiency of water use. In addition to people, the industry needs clean water, a natural resource that is becoming ever scarcer. More effective water use reduces costs and energy consumption.

In China, Kemira supplies products and services to municipalities and water-intensive industries, such as paper, oil and mining. Ronald Kwan, regional head for Kemira Asia-Pacific, points out that the increasing water treatment challenges present interesting business opportunities. For example, a significant share of the Chinese population has no access to clean water, and a considerable proportion of Chinese towns have no wastewater treatment.

“We aim to assume an important role in solving these problems while creating a sustainable business model. I am confident that the Shanghai Expo will accelerate this development and bring us closer to achieving our goal,” says Kwan. n

ShaRing inSpiRaTionSKemira participates in the World Expo by sponsoring Finland’s pavilion, Kirnu (Giant’s Kettle). The pavilion’s surface is comprised of 26,000 shingles made from recycled materials. In addition, Tikkurila, which recently separated from the Kemira Group, provided surface treatment materials for the pavilion’s steel frame, interior, entrance and external courtyard walls.

“The pavilion’s theme, Sharing Inspirations, is close to Kemira’s values, as is the World Expo’s urban theme,” explains Carol Jin, communications manager for Kemira Asia-Pacific.

Furthermore, environmental responsibility, one of the World Expo’s focus areas, is also strongly related to Kemira’s values and business opportunities. Kemira’s vision is to be a leading water chemistry company, and Kemira promotes everyone’s right to clean water. Moreover, Kemira helps companies and municipalities reduce their water footprints.

According to Jin, Kemira’s participation in the World Expo also

20621073.indd 25 27.5.2010 14:51:32


20621080.indd 26 28.5.2010 11:21:29


Massive investments in water treatment increase the demand for water chemicals in China, where Kemira aims to strengthen its position in all customer segments. India is showing great potential as well.

AsiAn giAnts invest in wAter expertise

text Matti ReMes | pHOtOs GettY iMaGes And istOCKPHOtO

»

rapid economic growth and investments in infrastructure, worth hundreds of billions of euros, make China the fastest growing market for solutions related to

water treatment. The country is building new drinking water and wastewater plants and a water transportation infrastructure as part of an ongoing EUR

400 billion economic stimulus plan. Investments in industrial wastewater treatment are massive as well.

“Water chemicals are not yet used extensively in China, but their consumption will grow by 8 to 10 percent each year,” says vice president Tomas Forsgård, who is responsible for Kemira’s Municipal & Industrial and Oil & Mining segments in the Asia–Pacific region.

20621080.indd 27 28.5.2010 11:21:30


n Fast growth in india

in addition to China, kemira seeks

growth in india, the country with

the second largest population in

world. according to Sudip Sarkar,

kemira’s managing director for

india, the country offers immense

potential.

“according to studies we have

carried out, only 26 or 27 percent

of household wastewater and

60 percent of industrial

wastewater is currently treated.

these proportions are expected

to increase significantly, because

water management is one of

the government’s focus areas.

this also means significant

investments.”

sudip sarkar says that kemira’s

competence and product

selection fit the indian market

perfectly. the ever more critical

water shortage in many areas

is a challenge for households

and industries alike.

two years ago, kemira opened

its first indian office in Hyderabad,

in the central part of the

country. kemira currently has 15

employees in india, but the sales

and service network is expanding.

kemira focuses on industrial

customers, especially those in

the paper, textile, petrochemical,

metal, mining, and food industries

– the sugar industry in particular.

in the future, the company will

expand its indian operations to

municipal water management.

“our goal in both india and China

is to secure a significant market

share,” tomas Forsgård sums up.

CoMPReHensive netwoRk in CHinaWater investments focus on the metropolitan areas in eastern China, but provincial centers are also seeing active construction. Forsgård points out that finding solutions to environmental and health problems has become an important concern in the country.

“The government’s five-year plan includes a detailed description of the target requirements for water quality. Regulations are monitored more closely than before at the local level.”

Kemira has operated in China since 1999. In recent years, the company has invested increasingly in the country, building an extensive network that offers a complete selection of products and services for key customer groups.

FoCus on wateR-intensive industRiesKemira serves customers in water-intensive industries that need effective water management methods. In 2009, six percent of the company’s EUR 2.5 billion turnover came from the APAC region.

The focus areas of the Municipal & Industrial segment include water treatment solutions for industrial plants. In addition to municipal waterworks, Kemira caters to the needs of the textile, sugar, food, animal feed and medical industries. Important customer groups also include electricity companies, which need water chemicals and corrosion inhibitors in their processes.

China offers enormous possibilities, but the competition is tough. According to Forsgård, the water chemical market is extremely fragmented.

“China has an abundance of local suppliers. In addition, all our major international competitors are here. Success requires a cost-efficient business model that can be adjusted to customers’ needs.”

For Kemira’s Oil & Mining segment, too, China is a potential growth market. The initial customers are local oil producers, and Kemira is seeking new markets in the mining industry.

“The oil and mining sector in China consists of large state-owned companies. In addition, the country has a large number of smaller private companies. »

The Chinese government has set specific target requirements for water quality.

20621080.indd 28 27.5.2010 14:50:11


• China is the fastest growing

market for solutions related to

water treatment. the country is

building new drinking water and

wastewater plants and a water

transportation infrastructure.

investments in industrial wastewater

treatment are massive as well.

• Finding solutions to environmental

and health problems has become

an important concern for China.

• in recent years, paper production

in China has grown by 12 percent

per year on average.

• For kemira’s oil & Mining segment,

too, China is a potential growth

market. the initial customers are

local oil producers, and kemira is

seeking new markets in the mining

industry.

• kemira has operated in China since

1999.

30 seconds

20621080.indd 29 27.5.2010 14:50:23


Most of our customers are service companies operating close to oil fields and mines.”

PaPeR CHeMiCals sHow GReat PotentialThe market outlook for paper chemicals is excellent. In recent years, paper production in China has increased by 12 percent per year on average. K.D. Lin, sales manager for Kemira’s paper segment in China, says that the company has established a strong organization based on sales and customer support.

“Our main customers are the packaging and board, printing and writing paper, tissue and pulp industries.”

Kemira is the market leader in China in ASA sizing, which is a technique to control liquid resistance and improve the printability of paper and board. Lin believes

that collaboration among Kemira’s different segments, along with an extensive product selection, will help the company gain an even stronger foothold in the country. Moreover, paper plants need to enhance the efficiency of raw water, process water and waste water treatment.

According to Lin, Kemira’s stronger presence in China requires local production. Kemira is already part of a joint enterprise that manufactures paper chemicals near Shanghai.

ReseaRCH CenteR CoMPleMents keMiRa’s seRviCesKemira’s products and services are complemented by a research center in Shanghai that will expand its research and development operations from the pulp and paper industries to serving the needs of Kemira’s other customer groups.

“In research and development, focusing on an application and process competence related to customer industries offers a strong competitive edge,” Forsgård says.

In addition to research and development, Kemira has recruited employees to sales and technical services. Including the staff of the joint enterprise manufacturing water chemicals, Kemira has some 400 employees in China. n

Paper plants need to enhance their water management efficiency.

20621080.indd 30 27.5.2010 14:50:26

2 | 2010 waterlink 31

MEGACITIES’ COLOSSAL WATER CHALLENGESTExT Dan Steinbock | ILLuSTRATION aRiJUkka tURtiainen

In 1950, there were only two cities worldwide with more than 10 million people; by 2025, there will be 27 cities with

more than 10 million people, most of them in large emerging economies.

As urban agglomerations, megacities offer great potential economic strengths. But they are also creating colossal challenges of sustainability – especially in water management.

Mega-RegionS, Mega-PotentialToday, the world’s megacities are merging to form ‘mega-regions’, which may stretch hundreds of kilometers across countries and be home to more than 100 million people.

The largest of these endless cities is the Pearl River Delta region (Hong Kong/Guandong) in China, home to about 120 million people. Other mega-regions have formed in Japan and Brazil and are developing in India, West Africa and elsewhere.

Although mega-regions are home to fewer than 18 percent of the world’s population, they account for 66 percent of all economic activity and about 85 percent of technological and scientific innovation. The top 25 cities in the world account for more than half of the world’s wealth.

DiSRUPtive exPanSion, Size withoUt gRowth In the past, megacities evolved gradually, over time. People did not move to London or New York City in a decade or two, but in the course of a century.

The gradual shift allowed these cities to develop the necessary infrastructure for the provision of clean water and safe disposal of waste and storm water. In contrast, the megacities of

COLuMN

the developing world have witnessed explosive growth since the postwar era.

The second major difference of recent urbanization is the fact that the expansion of these agglomerations has not been supported by economic growth.

Disruptive expansion and size without growth account for the darker side of mega-regions. Many of them are resulting in unprecedented urban sprawl, new slums, unbalanced development and income inequalities as more and more people move to satellite cities.

In the absence of appropriate water policies, the long-run costs of economic growth will simply prove prohibitive.

In many ways, China’s future, for instance, is shaped by water. While the coastal cities are haunted by floods, millions of people in southwestern provinces suffer from once-a-century droughts.

In the Shanghai World Expo, the slogan is not “Growth, at Any Cost”, but “Better City, Better Life.”

The idea is that building sustainable cities requires careful consideration of not just energy consumption, consumption, waste management, and air pollution, but also water resources. n

Dr. Dan Steinbock serves as a research director of international business in the India, China and America Institute.

20621079.indd 31 27.5.2010 14:48:54

»

Kemira has initiated a new research center that incorporates the highest expertise in water

management. Research at the Center of Water Efficiency Excellence (SWEET) has carefully selected

focus areas: more efficient water reuse, biomass treatment and sustainable water chemistry.

tEXt MATTI REMES | PHOtOS RAMI LAPPALAINEN

IntEgratEd

watEr EXPErtISE


20621074.indd 32 27.5.2010 14:47:56

• In March, Kemira and VTT

established the Center of Water

Efficiency Excellence, which

incorporates the highest expertise

related to water research.

• The Center of Water Efficiency

Excellence (SWEET) is an internationally

significant research center in

environmental technology that

integrates Finnish water expertise to

create new solutions that meet the

needs of different interest groups

around the world.

• The center employs some

200 people annually. Funding for

research over the next four years is

estimated to total 120 million euros.

• The research center develops

technologies that enhance the

efficiency of water use and recycling

and creates more sustainable and

energy-efficient solutions for water-

intensive industries.

• The research center supports the

implementation of Kemira’s strategy,

which focuses on water expertise.

30 seconds


20621074.indd 33 27.5.2010 14:47:58

nnovation is based on individual ideas, but it also requires multidis-ciplinary collaboration in research and development. In March, Kemira and VTT established the Center of Water Efficiency

Excellence, which incorporates top expertise related to water research.

The state-owned VTT Technical Research Center of Finland is Kemira’s initial strategic partner in the research center.

According to Johan Grön, Executive Vice President of R&D and Technology, Kemira has launched an internationally significant research center in environmental technology: “We will gather together existing Finnish water expertise to create new and unique expertise that meets the needs of different interest groups around the world.”

Kemira has a long history of research and development in water chemistry. Closer collaboration with VTT and other partners offers an opportunity to combine collected knowledge and skills with top expertise in other fields.

“Environmental technology requires collaboration among different specialties. A single company has limited opportunities to manage multiple business logics.”

A STEP ToWARd KEMIRA’S VISIoNA separate headquarters will not be required, since the center is formed by a network of existing institutions. It will employ more than 200 people annually, and funding for research over the next four years is estimated to total 120 million euros. This includes funding from sources outside Kemira and VTT.

“In addition, the work will lead to required investments in piloting and demonstration scale units in the next few years to prepare the innovations for commercialization,” says Grön.

Kemira’s vision is to be a leading water chemistry company. The challenges of water treatment call for improved solutions, which offer major business opportunities for Kemira and other companies focusing on water expertise.

According to Grön, Kemira’s role as initiator of the new center of water-related expertise comes naturally: “Profitable growth is the cornerstone of our strategy, which focuses on water expertise. New products and customers are integral to profitable growth.”

RECyCLINg ANd MoRE SuSTAINAbLE SoLuTIoNSThe research center develops technologies that enhance the efficiency of water use and recycling. The center also creates more sustainable and energy-efficient solutions for water-intensive industries. The needs of different customer groups and the global market outlook largely determine the research focus areas.

The main purpose is to ensure the availability of raw materials for water-intensive industries. Many areas suffer from water shortage, which makes water a strategic raw material.

Municipalities need more efficient solutions for wastewater treatment because of rapid urbanization. As for industry, it is seeking ways to overcome the challenges of more efficient water use and stricter environmental regulations.

CAREFuLLy SELECTEd FoCuS AREASAccording to Grön, the center focuses on three research areas: more efficient water reuse, technologies related to biomass processes and water chemistry in the aid of sustainable development.

Challenges in increasing the efficiency of water reuse include removing detrimental microorganisms, controlling scaling, disinfecting and recycling nutrients.

“Improved technology has increased water efficiency considerably in different industries. In the future, however, optimizing costs, quality and quantities requires integrating chemical methods into comprehensive solutions more closely.”

For example, management of water recycling can be improved by combining intelligent remote diagnostics with chemistry.

Important research topics in this area include processes related to different separation technologies. The research center improves the chemistry of the desalination

The new research center aims to create jobs outside Kemira and VTT as well.

I


20621074.indd 34 27.5.2010 14:48:03

of seawater, brackish water and wastewater with existing and new chemicals.

“We have a natural interest in this area, where membrane technologies play a key role,” says Grön.

Membranes or filters with extremely small pores are widely used in water recycling and use. In this area, researchers are seeking ways to enhance the processes and increase cost-efficiency by preventing scale from forming on the membrane surfaces.

NEW SoLuTIoNS FoR bIoMASS TREATMENTThe center also focuses on more effective water recycling and on the use of biomass from wastewater treatment in producing energy and biofuels.

Chemical processes developed for sludge management is of high interest. Sludge is a biomass that, until now, has been under-utilized. A total management process would include dewatering to re-move a maximum amount of water, biogas production, and nutrient recovery.

Research into water chemistry in the aid of sustainable development involves creating bio-based, biodegradable and recycled products and concepts.

“Customers’ changing needs and stricter legislation will increase the

demand for these products. In addition, reduced oil availability and rising oil prices will boost the development of new bio-based chemicals.”

A gLobAL LEAdER IN WATER ExPERTISEVTT is the largest organization specializing in multitechnological applied research in Northern Europe. VTT offers diverse technology and research services for customers in the private and public sectors.

According to VTT’s President and CEO Erkki Leppävuori, the new research center is a significant step toward Finland’s goal of becoming a global leader in water expertise. Kemira is a perfect fit as a collaborating partner, as Kemira’s and VTT’s areas of expertise complement one another.

VTT has more than 2,000 experts, whose knowledge and skills in metering, monitoring, process management, biotechnology, electronics and material technology are now available to the new research center.

“We can help our partners create new products, services and production methods and processes by combining multidisciplinary expertise. This is a strong competitive asset,” says Leppävuori.

Other strengths include VTT’s close contacts with universities, which

Challenges related to water use are increasing. This calls for significant investments in research.

means that basic research carried out at universities also benefits research and development at the new center.

A REWARdINg PARTNERShIPThe new research center aims to create jobs outside Kemira and VTT as well.

“Developing technologies, services and business models offers new opportunities for small and medium-sized enterprises, to name but one example,” Grön points out.

Collaborating partners also benefit from Kemira’s worldwide contacts and channels. Operating in 40 countries, Kemira has some 100 production plants around the world.

Grön believes that the new hub of Finnish expertise will attract both domestic and international experts and companies.

“Kemira is a globally known supplier of products and services in all water-intensive industry segments.”

Leppävuori believes that strong partnerships and networks will make the research center a global player.

“The Finnish ICT cluster helped the country resume economic growth in the early 1990s. This phenomenon can now be reproduced in water expertise.” n


20621074.indd 35 27.5.2010 14:48:05


The annual production capacity for the new linerboard machine is 650,000 metric tons made from recycled pulp.

20621078.indd 36 28.5.2010 8:52:09


A significAnt

step ingermAny

Kemira offers a full-service solution for Propapier’s new linerboard machine in Germany. teXt Risto Pennanen | pHOtO GettY iMaGes

the German packaging company Propapier GmbH started up a state-of-the-art linerboard machine in March. This

translates into 170 new jobs in the region; indirectly, the new machine will create as many as 500 jobs. This marked a significant event for Eisenhüttenstadt, the town of 30,000 people where the company is located.

The site area equals ten soccer fields and the annual production capacity for the new linerboard machine is 650,000 metric tons. Linerboard made from recycled pulp is also known as testliner.

The machine marked an important milestone for Kemira as well, as the company supplied a full-service chemical solution for the new mill. In fact, Kemira had the opportunity to contribute its expertise when fine-tuning the processes at the construction stage, long before the new linerboard machine was launched.

“For this project, we began collaborating with the customer 18 months ago. We helped the customer choose the right chemicals, dosing

equipment and laboratory equipment. Now we actively support the start up period with system measurements in the lab, helping to get the applications and dosing equipment to work in the optimal range,” says sales representative Juliana Schülke from Kemira.

In addition to the customer, Kemira actively collaborated with Metso, the machinery supplier, and Pöyry, the consulting and engineering company who provided the engineering services for this new investment. Several local companies were also involved.

touGheR challenGesProduction based on recycled fibers is a challenge not only for testliner produc-ers, but also for chemical suppliers. The quality of recycled fiber has decreased in recent years in Germany, where the recy-cling rate has virtually reached its highest possible level. Fibers cannot be recycled interminably. For this reason the quality of recycled fiber varies considerably, as does the amount of impurities.

At the same time, customers set higher quality requirements, and linerboard weighs less per square meter than before. Although the quality of recycled fiber varies, customers expect packaging made from recycled fiber to equal that made from fresh fiber. This is why controlling impurities is so important in processes using recycled fibers. From an environmental point of view, it is important to reuse as much process water

as possible. This increases the already high requirements on the chemical system.

To overcome challenges of this type, Kemira has invested in the research and development of technologies related to recycled fiber in recent years. Kemira’s research center in Leverkusen, in particular, has worked hard to further develop the company’s recycling expertise.

BetteR solutionsAt Propapier PM2, Kemira’s full-service solution includes water management. This water management solution enables pro-cess water recycling, significantly reducing the use of water and optimizing the use of chemicals. Moreover, the system reduces unscheduled production breakdowns and improves product quality.

The new machine includes another important unique Kemira solution: a closed loop color measurement and control system for the usage of three anionic direct dyestuffs at the wet end of the linerboard machine.

“This color management system helps the customer achieve significant improvements in quality and cost,” says Schülke.

Propapier is part of the German Progroup AG, which offers products and services for the packaging industry. The company’s two machines produce a total of approximately 1,000,000 metric tons of testliner each year. Kemira also supplies chemicals to the company’s first machine in Burg. n

20621078.indd 37 28.5.2010 8:52:09


MARCH 2010 APRIL 2010 MAY 2010

Kemirashare

OMX Helsinki CAP

8.0 €

10.0 €

12.0 €

6.0 €

May 24, 2010 Kemira to sell its service company IPOS to a Swedish company Coor Service Management ABMay 7, 2010 Transfer

of the Company's Own Shares May 7, 2010

April 30, 2010 Kemira to sell its Kokkola sulphuric acid plant to Boliden Kokkola Oy

April 29, 2010 Cash dividend of EUR 0.27 per share

April 29, 2010 Kemira Oyj's interim report January-March 2010: A good start of the year, Tikkurila's separation was completed

March 16, 2010 The Annual General Meeting approved dividend to be paid in Tikkurila Oyj's shares

March 22, 2010 Kemira's Environmental Report 2009 published

March 4, 2010 Transfer of the Company's Own Shares March 3, 2010

March 9, 2010 Kemira Oyj and VTT to establish a Center of Water Efficiency Excellence in Finland

March 11, 2010 Finnish language prospectus related to the proposed share dividend in the form of Tikkurila Oyj’s shares and the listing of the shares published

picking up the pacein South america and aSia

February 24, 2010 – may 24, 2010 kemira’S market perFormance & preSS reLeaSeS

numBerS

text jyrki mäki-kala | photo juha salminen

20621068.indd 38 28.5.2010 10:11:49


MARCH 2010 APRIL 2010 MAY 2010

Kemirashare

OMX Helsinki CAP

8.0 €

10.0 €

12.0 €

6.0 €

May 24, 2010 Kemira to sell its service company IPOS to a Swedish company Coor Service Management ABMay 7, 2010 Transfer

of the Company's Own Shares May 7, 2010

April 30, 2010 Kemira to sell its Kokkola sulphuric acid plant to Boliden Kokkola Oy

April 29, 2010 Cash dividend of EUR 0.27 per share

April 29, 2010 Kemira Oyj's interim report January-March 2010: A good start of the year, Tikkurila's separation was completed

March 16, 2010 The Annual General Meeting approved dividend to be paid in Tikkurila Oyj's shares

March 22, 2010 Kemira's Environmental Report 2009 published

March 4, 2010 Transfer of the Company's Own Shares March 3, 2010

March 9, 2010 Kemira Oyj and VTT to establish a Center of Water Efficiency Excellence in Finland

March 11, 2010 Finnish language prospectus related to the proposed share dividend in the form of Tikkurila Oyj’s shares and the listing of the shares published

a t last fall’s Capital Markets Day, our main message was that, in addition to improving profitability,

Kemira is moving to the next phase defined by our strategy: growth.

Reaching the set goals requires an increasingly strong foothold in markets where demand for water expertise is growing at the fastest rate in the world. In other words, in Asia and South America.

On both of these continents, water shortage and the problems it brings to societies and industry require ever more efficient solutions in the future.

Asia and South America accounted for 15 percent of Kemira’s total sales last year. However, the pace will pick up and,

according to the strategy we have chosen, we will ambitiously strengthen our presence on both continents.

In addition to organic growth we may also rely on acquisitions and joint ventures.

A comprehensive understanding of our customers, products and processes is Kemira’s main competitive asset, alongside our new products. In order to create the latter, an important investment in research and development is mandatory. Our strengths form a good foundation for growth also in the demanding markets of Asia and South America. n

Jyrki Mäki-Kala is Kemira’s chief financial officer.

calendar

july 29 interim report january–

june 2010, at 8.30 am

september 7 capital markets day,

helsinki

For more information about Kemira’s stock and owners, please see Kemira’s website at www.kemira.com ➝ Investors ➝ Share information

20621068.indd 39 28.5.2010 10:11:49


numBerS

“the better we are able to forecast sales demand in quantities, the more

efficient our supply chain will become. This enables us to serve our clients better,” says executive vice president Petri Boman, who is responsible for Kemira’s supply chain management.

During the past year, Kemira has imple-mented an operating model that closely links sales forecasts to Kemira’s global demand-supply balancing process.

In practice, sales forecasts are based on actual sales information and estimates of future demand. These are collected monthly from sales representatives. These data are compiled at the group level to evaluate and

solve possible restrictions in production capacity or in raw materials.

“Sales forecasts are a new tool for us. The importance of this tool will continue to increase as we strive for more efficient operations and optimal profitability.”

The global financial crisis served as a reminder of how rapidly the market and demand can undergo major fluctuations. Accurate sales forecasts play an important role in fast inventory rotation, which enhances working capital management.

Moreover, when production volumes can be based on product demand forecasts, customers can trust that the products they need will always be available as promised. n

SucceSS iS BaSed on SaLeS ForecaStStext matti remes | photo juha salminen

KEMIRA IN BRIEF

kemira is a global, eur

2 billion chemicals

company that is

focused on serving

customers in water-

intensive industries.

the company offers

water quality and

quantity management

that improves

customers’ energy,

water, and raw

material efficiency.

kemira’s vision is to

be a leading water

chemistry company.

www.kemira.com ePs eur

Ownership (April 30, 2010) %

Oras invest Oy 16,7

solidium Oy 16,7

Varma 9,8

ilmarinen 5,9

Other Finnish institutions 20,4

non-Finnish owners, including nominee-registered institutions 9,5

households 18,8

kemira 2,3

Operative eBit meurrevenue meur

(MEUR) Q1/2010 Q1/2009 2009

revenue 514,7 497,5 1969,9 Operative eBit 39,1 24,1 124,9 Operative eBit, % 7,6 4,8 6,3 ePs (eur) 0,18 0,05 0,47

capex excl. acquisitions 16,1 12,7 82,2 cash flow after investments 132,7 -34,4 202,2

Gearing, %, end of period 42 113 53

equity ratio, %, end of period 50 34 45

Personnel, end of period 5027 8926 8493

** includes tikkurila until march 25, 2010

200

150

100

50

0,8

0,6

0,4

0,2

3000

2400

1800

1200

600 2007 ** 2008 ** 2009 2010

1-3 1-3 1-3

** ** **

** **

** **

** **

** includes tikkurila

2007 ** 2008 ** 2009 2010

2007 ** 2008 ** 2009 2010

20621068.indd 40 28.5.2010 10:11:50


kemira is aiming to grow through gaining a stronger foothold in the emerging markets. In Colombia, Kemira has sales offices in

two important cities, Bogota and Cali. The office in Bogota is focused on catering to customers in the oil, mining and municipal sectors as well as in numerous other industries. The staff in Cali serves clients in the paper industry.

The main target groups – not only for Colombia, but for all the Andean countries – operate in sectors that require large amounts of water in their production. Sugar, oil and wastewater are some of the most significant customer groups. Another important group in relation to tissue manufacturing and board production is the pulp and paper industry.

“The products most in demand in all Colombian customer segments are dispersants, organic coagulants and flocculants,” says Carlos Martinez, sales manager for Kemira’s Paper segment. “And sizing chemicals have also become a growing and important product group in paper manufacturing.”

Today, all Andean countries have environmental ministries. Thus regulations regarding the proper use and disposition of water have been put into effect. Jorge Adams, sales manager for the Oil & Mining segment, says:

“With every new industrial project, an environmental impact study program must be implemented by law. All possible emissions or disposals to air, water or land are assessed before the start of any operation. This is a business opportunity for Kemira, as we offer technology for conducting such studies.”

Kemira is seizing the chance to become the regional leader. Additionally, most of the local economies are showing positive development, which increases the company’s possibility to maintain healthy growth.

In the future, Kemira aims to be a leading water chemistry company in Colombia and worldwide. n

FocuS on coLomBia: tighter LegiSLation LeadS to growthtext minna Valtari

Sugar, oil and wastewater sectors are among the most significant customer groups.

20621068.indd 41 28.5.2010 10:11:51

Bread, cakes, tortillas and other baked goods can quickly become moldy in hot and humid tropical conditions. The same applies to feed for pigs, poultry, cattle and aquatic animals. The level of humidity in the air, elevated moisture content in grains as well as the high water activity in food and feed promote mold growth and subsequent formation of mycotoxins.

Kemira’s propionic-acid based ingredients, sold under the Kemira ProBake and Kemira Mold Control brands, keep molds at bay, hence resulting in safe food and safe feed. In the tropical climate of South East Asia, Kemira is the leading supplier of propionic-acid based ingredients to the bakery and animal feed industries. n

Tropical TemperaTures, TasTy bread

amaZiNG

isTockph

oTo

the cleanliness of water used in paper production is of utmost importance. Impurities would pose a serious threat to a system involving large volumes, high pressures and extreme temperatures. Its own share of suspense is brought on by paper pulp moving along in production at highway speed, as a 36-feet-wide web.

FennoDose, a small-scale automation solution developed in Kemira’s research center, monitors water quality and controls water chemical use in paper plants. The system automatically measures how clean the water is, for example, at the end of the process. If the amount of impurities exceeds the default level, FennoDose increases the chemical dosage. Without automation of this type, paper plants would need to use chemicals as a precaution, unaware of the actual need.

After implementing FennoDose, some paper plants have been able to improve the efficiency of chemical use by several dozen percent. n

FeNNodose skimps iN The riGhT spoT

isTo

ckph

oTo


20621067.indd 42 27.5.2010 14:46:23

isTo

ckph

oTo

water is not something to take for granted – particularly in the driest parts of Spain where water reuse is crucial for local fruit and vegetable cultivation. At a wastewater treatment plant in Molina de Segura, approximately 81 kilometers from Alicante, 100 percent of treated water is used for irrigating, for example, mandarin, orange, and lemon plantations.

The problem, however, is that previous methods of water disinfection have proven to be below par: UV-light is not sufficient on its own and chloride-based chemicals are generally to be avoided. For this, Kemira’s DesinFix is the perfect solution. DesinFix disinfects treated water in ten minutes and leaves behind no toxic by-products, allowing for efficient and safe water reuse – and juicy fruit. n

The FiX For FruiT


20621067.indd 43 27.5.2010 14:46:31


On the set. Randy Owens, head of Kemira’s Oil & Mining segment gets down to earth – literally – for the WaterLink shoot.

ALSO in thiS iSSue

the winner of the Stockholm Water Prize

urban solutions for urban challenges

Shrink your water footprint!

Clean water, juicy fruit

20621065.indd 44 27.5.2010 14:44:52

kemira stakeholder magazine 2/2010 digging ......since 1991, the stockholm international water...

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