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Stora Enso Imatra - Web Inspection / Defect Detection System Upgraded to Improve the Quality of Board Machine 4
Stora Enso Imatra Mills is the largest manufacturer of liquid packaging board in the world. Consumer packaging board used in contact with food and liquids must meet strict quality requirements set for food safety. What is more, no flavours can dissolve from the board into food products, and the products must be first-rate in terms of visual cleanliness.
For several years, systems supplied by Procemex have been used in Stora Enso's board machine 4 (BM4) to indicate any defects in board quality and to reduce web breaks. In March 2016, Stora Enso Imatra Mills made a system modernisation investment to improve the quality of food packaging board and increase the efficiency of the board machine.
Why Did You Decide to Upgrade Your System?
“We compared three different suppliers Riku-Suurnakki-Stora-Enso-Procemex-lr1.jpgand ended up with Procemex, first of all, because we have had positive experiences with the previous system and, secondly, because we were able to upgrade the previous system – without needing to acquire a completely new one. We also investigated what benefits we can gain from the upgrade. In the end, the decision was an easy one; after all, we obtained a wholly new system by simply upgrading the old one,” says Mr. Riku Suurnäkki, Production Manager of BM4.
“Both web break and web inspection/defect detection systems are critical elements in order to be able to operate these machines: web inspection in terms of the final cleanliness and the web break system in terms of production efficiency. If we encounter any problems with efficiency, the web break system allows us to identify the root cause of breaks, enabling us to resolve, or even eliminate, the problems.”
Stora Enso Imatra Mills defined new locations for cameras, together with machine operators, and, now, cameras indicate the locations where pulp starts to pile up. “Of course, it is essential to listen to users,” Suurnäkki says.
“The new system became a necessity after we identified that we need to improve the classification of defects and the usability of the system. The previous system was unable to reliably classify a certain common defect, and there were situations in which defects in board ended up in our plastic coating,” says Suurnäkki.
What Benefits Did the Upgrade Produce?
The new upgraded Procemex cameras have a significantly higher resolution, defects are now classified more closely, the detection of defects is now more visual and the system is easier to configure for each user.
“We can better detect any dirt and impurities,” says Vesa Koskinen, system specialist at Efora, who is responsible for the maintenance of the BM4 system.
Project Management at the Core
“On our part, the project did not get off to a textbook start, and we were forced to speed up the process. Procemex did an excellent job, even though the order-delivery schedule was very tight. The installation period was also tightly regulated and brief, but Procemex was able to ensure the resources required,” says production manager Riku Suurnäkki. “Commissioning, adjustments and links to mill systems – everything was done on time.”
“The experience we have had so far indicate that the detection of defects is now much more visual than in the previous system, and the classification of defects has improved. Operators have already given us direct positive feedback, saying that the image quality is on a completely different level and, therefore, there are fewer web breaks,” Riku Suurnäkki says.
Usability and Maintainability
“When acquiring new systems, usability and maintainability are among the most important criteria in order to keep our expensive machines and systems up and running. Cameras need to remain clean and the image quality must be high. The supplier must be quick and easy to reach,” Suurnäkki says, listing the criteria set for the new system.
“The new system improved overall reliability. We acquired new PCs and upgraded our cameras. Shifting to the new system was a simple process,” Vesa Koskinen says. “These Procemex Pinhole cameras are excellent, and they practically require no cleaning. The Pinhole cameras are in challenging locations, where pulp keeps flying every which way, but they are easy to keep clean. The new Procemex cameras offer an HD quality, the images they produce are on a whole different level, and lighting has been improved by using new Procemex LEDs. These new lights are much easier to control than the old ones.”
“It is easy to call Procemex whenever we need help, and it quickly responds to our questions,” Vesa Koskinen says.
Remote Maintenance Reporting
Stora Enso is using the Procemex remote reporting system, which offers preventive information, for example, about system performance, camera image quality, the operation of IT hardware and backups – it is a maintenance tool. The system produces monthly reports, creating comprehensive information about maintenance and raising a need for various tasks. “Procemex has very short delivery times for spare parts; of course, with the help of the preventive remote reporting system,” Koskinen says.
“We have new development projects in progress all the time, but we cannot say anything more about them at this stage. As requirements are becoming tighter and tighter, there is always something to improve. Procemex is an excellent partner in these projects.”
Stora Enso Imatra:
Stora Enso Imatra Mills is the largest manufacturer of liquid packaging board in the world. Imatra Mills consists of two mill units: Kaukopää and Tainionkoski. Together, these units employ approximately 1,000 people. The annual capacity of Imatra Mills is more than one million tonnes of board and paper. More than 90% of production is exported. The company's main market areas are located in Europe, while Southeast Asia forms another significant region.
Imatra Mills produces board and paper. Stora Enso manufactures liquid packaging board for milk and juice cartons, among others. Food packaging board is used to manufacture cups and different food packages. Packaging board is used in food, candy and cigarette packages. Package covers, cards and luxury packages are made from graphic board. Imatra Mills also manufactures packaging paper.
Procemex is an international market leader in machine vision systems for the paper, pulp and print industries. Procemex specialises in smart camera-based systems for the paper, pulp and print industries to improve product quality and increase production efficiency. The head office of Procemex Oy is located in Jyväskylä. The company employs approximately 60 people.
Procemex Oy was founded in 2000. Nearly 600 Procemex systems have been delivered to more than 50 countries.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $32.0 million for the third quarter of 2016 compared to $61.3 million for the third quarter of 2015. Adjusted EBITDA for the quarter was $34.3 million, down 45.7% compared to third quarter 2015 Adjusted EBITDA of $63.2 million.
"Clearwater Paper achieved third quarter financial results at the high end of our outlook with increased retail sales volumes in consumer products that helped to mitigate continued challenging paperboard market conditions," said Linda K. Massman, president and chief executive officer. "The team's outstanding focus on implementing our strategic capital projects and operational efficiencies also contributed to our results."
"Through the third quarter, we have purchased approximately 1.1 million shares at an average price of $46.91 as part of our $100 million stock repurchase program we announced last December. Our stock repurchase program reflects our confidence in future cash generation capabilities and a commitment to return capital to shareholders," said Massman.
THIRD QUARTER 2016 SEGMENT PERFORMANCE
Net sales in the Consumer Products segment were $253.3 million for the third quarter of 2016, up 2.5% compared to third quarter 2015 net sales of $247.0 million. This increase was due to market share gains, which resulted in growth of total tissue volume and a richer product mix that included a 7.0% increase in retail tons sold.
On a GAAP basis, the segment had operating income of $17.2 million in the third quarter of 2016, compared to operating income of $15.5 million in the third quarter of 2015. Adjusted operating income of $15.9 million for the third quarter of 2016 was down from $16.7 million compared to the same period in 2015, after adjusting for a $1.8 million net gain in the third quarter of 2016 resulting from the release of an indemnity escrow related to the sale of the company's former specialty tissue mills, $0.5 million and $0.7 million of costs in the third quarters of 2016 and 2015, respectively, related to the previously announced Long Island, New York facility closure, and $0.5 million of reorganization related expenses in the third quarter of 2015. The adjusted operating margin declined from 6.8% in the third quarter of 2015 to 6.3% in the most recent period due to higher maintenance and wage costs which were partially offset by higher shipment volumes, a richer product mix and lower transportation costs.
Total tissue sales volumes of 100,600 tons in the third quarter of 2016 increased by 2.5% and converted product cases shipped were 13.8 million, up 3.0%, each compared to the third quarter of 2015.
Average tissue net selling prices increased by a modest 0.04% to $2,516 per ton in the third quarter of 2016, compared to the third quarter of 2015.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $182.0 million for the third quarter of 2016, down 6.8% compared to third quarter 2015 net sales of $195.2 million. The decrease was primarily due to lower paperboard shipments and pricing. Operating income for the quarter decreased $27.4 million to $10.0 million, compared to $37.4 million for the third quarter of 2015, primarily due to $18.0 million of planned major maintenance at the Lewiston, Idaho mill, $3.5 million of net costs incurred from an unplanned power outage at the Lewiston facility, and contractual wage increases. These factors were partially offset by lower input costs for polyethylene, natural gas, and transportation.
Paperboard sales volumes decreased 1.1% to 196,271 tons in the third quarter of 2016, compared to 198,535 tons in the third quarter of 2015.
Paperboard net selling prices decreased 5.3% to $927 per ton compared to the third quarter of 2015.
The company's GAAP tax rate for the third quarter of 2016 was a provision of 48.8% compared to 28.3% in the third quarter of 2015 due to a low level of pre-tax income in the period. On an adjusted basis, the third quarter 2016 tax rate was 41.4%. The company expects its annual GAAP and adjusted tax rate to be approximately 36% plus or minus two percentage points for 2016.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, the company presents certain non-GAAP financial information for the third quarters of 2016 and 2015, including EBITDA, Adjusted EBITDA, adjusted net earnings, adjusted net earnings per diluted share, adjusted operating income, adjusted operating margin and adjusted tax rate. Because these amounts are not in accordance with GAAP, reconciliations to net earnings, net earnings per diluted share, operating income and adjusted tax rate as determined in accordance with GAAP are included at the end of this press release. The company presents these non-GAAP amounts because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance.
Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time today. A live webcast and accompanying supplemental information will be available on the company's website at http://ir.clearwaterpaper.com. A replay of today's conference call will be available on the website at http://ir.clearwaterpaper.com/results.cfm beginning at 5:00 p.m. Pacific Time today.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper's employees build shareholder value by developing strong customer partnerships through quality and service.
By Peter Veit and Helen Ding, originally published on World Resources Institute Indigenous Peoples and other communities hold and manage 50 to 65 percent of the world’s land, yetgovernments recognize only 10 percent as legally belonging to these groups, with another 8 percent designated by governments for communities. That’s bad economic policy. WRI’s new report, […]
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A new report on “Forest biomass, carbon neutrality and climate change mitigation” has been recently published by the European Forest Institute (EFI) within EFI´s “From Science to Policy” series.
Forest biomass, carbon neutrality and climate change mitigation
“World leaders finalized a historic global agreement to combat climate change in Paris in December 2015. They agreed on the need for global greenhouse gas (GHG) emissions to peak as soon as possible; to achieve GHG neutrality in the second half of this century; and to hold global warming well below 2°C relative to pre-industrial levels.”
“A key issue in the debate about the climate impacts of bioenergy is the question of ‘carbon neutrality’: bioenergy systems can influence the cycling of biogenic carbon between the biosphere and atmosphere, but studies sometimes disregard this when estimating GHG balances. In other words they assume that bioenergy systems can be considered neutral in regard to the biosphere-atmosphere CO2 flows.”
“This report provides insights into the current scientific debate on forest biomass, carbon neutrality and climate change mitigation. Its objective is to provide a balanced and policy-relevant synthesis on the issue, taking into account EU and global perspectives. Other societal objectives and interests are briefly touched upon but the focus is on climate change mitigation.”
The link to the series on EFI pages can be found here.
The link directly to the report can be found here.
How Adaptive Collaborative Management is transforming the landscape in Uganda
Title of presentation: Once, there was a lake About the presentation: Any change that happens in natural landscapes also affects and transforms social and cultural norms, and power and gender relations. This message is illustrated in the form of a story about Houria’s findings while working in Northern Mali; where the daily livelihoods of a […]