NEW RAUTEPRO XY CHARGER VENEER TAPING INCREASES YIELD SAN GIORGIO IS DEVOTED TO QUALITY IMPROVEMENT Issue 13 Raute Customer Magazine Published by Raute Corporation Russia's Greenfield project was built up from zero to full production in eighteen months. PLYVISIONS 1 RAUTE NOW RAUTE NOW RAUTE NOW RAUTE NOW RAUTE NOW RAUTE NOW RAUTE NOW Happy New Year 2011 FOR RAUTE, 2010 was a year of recovery following the catastrophic 2009, even though it was still not acceptable in terms of financial performance. Worth of special mention in regards to Raute's order intake in 2010 was the strength of the Asia Pacific market and the importance of the demand for LVL technology. 2010 was a time for Raute to revisit and modify our strategy so that we could better align ourselves with the postrecession situation. We have reaffirmed our commitment to add value to the production processes of the veneer, plywood and LVL industries by providing solutions that facilitate profitable and environmentally sustainable production. We will continue to be the global leaders in the development of production technology for the industries we serve. Raute's revised strategy can best be summarized in our new vision statement ­ "Profitable Solutions to All Customer Needs". Please take a minute to reflect on this statement as there is important meaning in every word. In order for Raute to realize this vision as we move forward, we must become even more customer focused than we have been in the past. We will need to provide even more attractive technology services to the customers looking to modernize and optimize their existing capacity. In addition, a new aspect of our strategy is a greater focus on serving the emerging markets demanding lower cost solutions and simpler technology. Cost efficiency and quality in all of our operations will remain an absolute must. The high level of competence within our own people continues to be an essential element in securing the benefits of this new strategic focus. Consequently, we will continue to invest in our people to ensure they possess the right skills, tools and attitudes. Raute was pleased to receive an order for an LVL mill in China near the end of 2010. It is the most concrete and recent indication that producers in China are shifting towards the use of more advanced technology also in veneer-based wood products industries. It also clearly indicates that the Chinese producers are prepared to respond to the more stringent end-product quality requirements of the international markets they intend to serve. Once again our team has collected a number of very interesting stories for this issue of PlyVisions. This issue reflects the current market situation and some of our new strategic focus areas. On the one hand we have a strong focus on our customers in Russia and their technology. On the other, we talk about modenizations, upgrades and services as well as what our customers have achieved by investing in them. Interesting reading for sure! On behalf of Raute, I would like to thank our customers and other business partners for their support during 2010. We are looking forward to working jointly with you throughout 2011. Once again, Happy New Year! May you all have a fulfilling and prosperous 2011! Tapani Kiiski President and CEO WE WILL CONTINUE TO BE THE GLOBAL LEADERS IN THE DEVELOPMENT OF PRODUCTION TECHNOLOGY FOR THE INDUSTRIES WE SERVE. 2 PLYVISIONS 12 CONTENTS Raute now New RautePro XY charger New services: knives, knife grinders and knife management Veneer taping increases yield and improves quality Continuous development guarantees competitiveness RAUTE IN RUSSIA Insight into the Russian plywood industry New Greenfield project Vyatskiy Fanernyi Kombinat invests in new mill Lesdrevmash 2010 San Giorgio is up to the challenge 2 4 6 8 10 12 17 20 21 22 10 Cover photo: Veli-Matti Lepistö 6 PlyVisions is Raute Corporation's Customer Magazine. Editor-In-Chief: Veli-Matti Lepistö Editor group: Eija Salminen, Matti Ukkonen, Olga Harju Layout: Onnion Oy Printing house: Libris 2/2011 Address changes: tuija.leppanen@raute.com Publisher: Raute Corporation, P.O. Box 69, FI-15551 Nastola, Finland, tel. +358 3 829 11, fax +358 3 829 3511 Copyright Raute Corporation. All rights reserved. Reproduction permitted only with permission from Raute Corporation. WELCOME TO LIGNA 2011 30 May­3 June in Hannover Ligna Hannover is an international hub for the woodworking and wood processing industries and is integral to the transfer of knowledge and networking. You are warmly welcome to visit our stand J38 in Hall 27. www.raute.com ISSN 1459-3165 PLYVISIONS 3 NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND New, RautePro XY charger ­ PRECISE ACCURACY AT AN AFFORDABLE PRICE RAUTE'S NEW XY CHARGER ENABLES YOU TO GET THE MOST OUT OF YOUR VALUABLE RAW MATERIAL. IT IS AN AFFORDABLE WAY TO REPLACE YOUR AGEING MECHANICAL CHARGER AND WILL ENSURE YOU ACHIEVE HIGHER CAPACITY FROM YOUR PEELING LINE. ONLY MINOR MODIFICATIONS ARE NEEDED TO THE EXISTING FOUNDATION AND INSTALLATION CAN USUALLY BE ACCOMPLISHED WITHIN ONE WEEK! THIS TOTALLY NEW TYPE of XY charger is intended to replace old mechanical chargers in existing peeling lines. It has been specially designed as part of a modernization package for Raute 2HV, 3VM, 3VKKT and 4VM peeling lines, which are equipped with mechanical PK chargers. This new stand-alone XY charger can also be installed ahead of similar types of lathes supplied by other manufacturers, subject to inspection on a case-by-case basis. UNIQUE CONCEPT RautePro XY charger is offered as a direct replacement for old mechanical charger models. Because it is a standalone system, it is also an ideal modernization solution, since installation time is relatively short. In most cases, the system can be operational within one week of delivery. The XY charger's compact design and relatively low weight mean that only minor changes are needed to existing foundations and the old block infeed equipment can be fully utilized. 4 PLYVISIONS SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES No mechanical connection to the lathe is necessary. The system's robust construction ensures simple and reliable operation. Instead of using hydraulics, the XY charger is equipped with modern AC-servo technology, which results in significant savings in maintenance costs and energy consumption. SIGNIFICANT IMPROVEMENT IN RECOVERY RautePro XY charger has been shown to improve recovery at the peeling line through a 10­15% improvement in the volume of full green sheets recovered from the face part of the block. The volume of randoms is reduced by up to 50%, which ensures a quick payback on your investment. Peeling line capacity is also improved since having the exact block shape data reduces the amount of nonproductive time between block cycles. Line capacity can be improved based on the charger design capacity of 4 blocks/ minute. Further automation of the peeling process is also possible. LASERS ENSURE ACCURACY From three to five fixed lasers are used to scan the surface of each peeler block. These lasers provide hundreds of measuring points for calculating the optimal position of the block in the lathe. Block positioning correction is performed in the rotation spindles located ahead of the lathe spindles. Charger accuracy is assured by the use of highly accurate LMI laser sensors and the 25 years of experience Raute has devoted to developing a block centering algorithm, the accuracy of which has been proven time and again. Following are typical results from actual cases where mechanical PK20, PK800, PK500 or PK600 block centering systems, supplied by Raute, have been replaced with a XY charger (block diameter 230 mm, core 70 mm): · full sheet recovery from 49% to 64% · reduction in randoms, < 4 ft wide from 6.7% to 3.7%. RautePro XY charger in a nutshell · true XY centering with rotational correction · manufactured from standard components · stand-alone system, installed independently of the lathe · only minor modifications to existing foundation needed · short installation and testing period on site Technical data: · 4/3 ft or 5/4 ft blocks · diameter range 100­450 mm (space for 600 mm swing) · installed power approx. 15 kw · laser scanners with 0.2 mm resolution · fully electrical controls AN ENVIRONMENTALLYCONSCIOUS DESIGN RautePro XY charger has been designed to operate in close proximity to the peeling line operator. With this in mind our engineers have ensured that the working environment around the XY charger is quiet and clean. There are no noisy hydraulic power units and, therefore, no risk of hydraulic oil leaks. Energy consumption of the low-noise AC-servos is significantly less than in conventional log chargers. · Text: Mikko Vesterinen, Jussi Puranen Pictures: Veli-Matti Lepistö, Jarmo Ikonen PLYVISIONS 5 NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND RAUTE'S SERVICES NOW INCLUDE the supply of knives, knife grinders and knife management programs RAUTE IS COMMITTED TO PROVIDING CUSTOMERS WITH EFFICIENT AND LASTING TECHNOLOGY THAT ADDS VALUE TO PRODUCTION. THIS COMMITMENT IS SUPPORTED BY CUSTOMER-ORIENTED DESIGN, THE USE OF BEST AVAILABLE RAW MATERIALS AND COMPONENTS AND TOP-NOTCH MANUFACTURING PROCESSES. A COMPREHENSIVE SELECTION OF SPARE PARTS AND VIABLE SERVICES ENSURE THE RELIABLE OPERATION OF RAUTE MACHINERY THROUGHOUT ITS LIFE-CYCLE. GOOD KNIVES ARE ESSENTIAL to quality veneer production. Knives are used at many stages of the veneer manufacturing process and are also key components in much of the machinery Raute manufactures. As such, the use of high-quality, well-maintained knives is of paramount importance when it comes to veneer quality, raw material recovery and productivity. In the past, Raute has delivered machines equipped with knives from various suppliers. Customers too, have purchased replacement knives that match the performance criteria of various suppliers. Now Raute has expanded its scope of services through the addition of knives and knife management programs. nia met these criteria and a cooperation agreement between Raute and Ravne was signed at the Ligna Show in Hannover, Germany in May 2009. Under the terms of the agreement Ravne will manufacture knives bearing Raute's logo. In turn, Raute will sell these branded knives to its customers through its global sales network. KNIFE GRINDING SOLUTION INCLUDED Regular and precise grinding is necessary for knives to remain in proper working condition. Some of Raute's customers take care of knife grinding in-house, whereas others prefer to outsource their knife grinding needs. Others still may want their knife supplier to take care of both knife grinding and stocking. Raute wanted to expand and improve its services in this area and so signed a cooperation agreement with Gustav Göckel KNIFE COOPERATION STARTED IN MAY 2009 Raute carefully evaluated various knife manufacturers in order to find a supplier whose products meet all the criteria set by Raute and its customers. It was determined that Ravne Knives of Slove- 6 PLYVISIONS SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES Peeling line - peeling knives - nose bars - trash gate knives - clipper knives Scarf-jointing line - clipper knives Composer knives - clipping knives Overlaying line - clipper knives Drum & spiral chippers - chipper knives - counter knives Maschinenfabrik GmbH of Germany in 2009. According to the agreement Göckel will undertake the manufacture of knife grinders for Raute and Raute will sell them to customers globally. Raute's knife management services also include training packages that cover correct knife setting, handling and grinding. Raute's knife management program can also be included as part of a service contract so customers can benefit from the regular monitoring of the condition of cutting tools and equipment. · Text: Timo Tikka COMPREHENSIVE KNIFE SERVICES Raute is now able to provide valueadded knives and knife management services to its customers based on extensive know-how in both veneer production technology and customers' production processes. Customers can purchase knives guaranteed by Raute through Raute's global sales network and even through Raute's website, which is the easiest and fastest way to place an order. Raute also offers a comprehensive knife management program whereby Raute ships knives directly from its spare parts center when required. This service leaves the customer free to focus on his core business without the trouble and cost of maintaining an extra stock of knives in-house. Raute and Ravne ­ a partnership in success Raute and Ravne are two companies fully dedicated to the global market. Our competitive power is demonstrated through innovation, knowhow and the quality of the products we deliver. By working together and delivering top-quality knives and equipment to a global market, Raute and Ravne will continue to strengthen their positions and ensure their evolution as even stronger and more powerful innovators. "The cooperation between Raute and Ravne and the synergy of knowledge on both sides is opening to both our companies a dynamic future for servicing the most demanding customers. At Ravne we always rely on our own positive judgement. Our partnership with Raute means a very important step into the future. Success is assured." ­ Mr. Darko Ravlan, the General Manager of Ravne Knives. PLYVISIONS 7 NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND VENEER TAPING IN TODAY'S CHALLENGING MARKET CONDITIONS, COST EFFICIENCY PLAYS AN IMPORTANT ROLE AS PLYWOOD PRODUCERS STRIVE TO ACHIEVE THE BEST POSSIBLE YIELD AND CONSISTENT PRODUCT QUALITY. MEASURES THAT WILL INCREASE yield and improve quality are, therefore, sought after in every phase of the plywood production process. In many cases, improvements in yield and quality can be achieved by making relatively small changes in the production process. Such changes are often very economical and relatively simple to implement and offer relatively fast payback. The development of a veneer tape application machine came from discussions between Mr. Ilpo Pasanen, a plywood production specialist at UPMKymmene's plywood mill in Säynät- increases yield and improves quality salo, Finland, and Mr. Erkki Kauranen, Raute's Technology Manager in charge of patching lines. Their discussion concentrated on ways to improve plywood yield and quality, with both men being of the opinion that the incidence of broken veneer during the various phases of the plywood production process was cause for considerable concern. Veneer sheets are easily broken, particularly when they became split and cracked. Under such circumstances they typically break in two. A good solution to avoiding problems caused by split and broken veneer is to use the time-proven method of taping veneer in the early stages of handling. While this is a good solution, there are inherent problems encountered when manually applying tape to veneer. The process can be awkward, making it sometimes impossible to achieve satisfactory taping results. With a clear understanding of the challenges involved in the veneer taping process, Mr. Pasanen and Mr. Kauranen set out to come up with a practical solution to this problem by working together to design a machine that would do the job efficiently with satisfactory results. TESTING WITH A VENEER PATCHING MACHINE It was the aim of both Mr. Pasanen and Mr. Kauranen to develop and test the tape application machine under actual production conditions using a manual patching machine. In this way they felt the results of their work could be properly observed. The first version of the tape applicator was a so-called rolling version in which tape was first rolled onto the surface of the veneer and then cut into appropriate lengths. This process proved to be too slow, however, and was discarded before being taken into the factory testing stage. 8 PLYVISIONS SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES AND SERVICES NEW TECHNOLOGIES Version two of the tape applicator was the so-called revolver model because the tape is guided above a circular form divided into mechanical sectors. The tape is pre-cut in lengths between the sectors, after which the sector strikes the tape with sufficient force for it to adhere to the veneer's surface. Results were very positive. Its operational reliability, coupled with its operating speed, made the revolver model tape applicator suitable for further testing and it was installed at the mill in January 2009. The 75/120 mm diameter roller must be replaced twice per shift when taping softwood veneer, and once when taping birch veneer. The time required to change over a tape roller is less than one minute. BETTER YIELD IN SEVERAL PLACES Taping has been found to improve yield in the following ways: · By preventing cracks and splits in veneer from growing larger and ensuring that sheets hold together. This reduces the need for excess puttying at the finishing line and speeds up the delivery time of a finished panel. · By ensuring that the patches placed in areas on veneer requiring multiple patches remain intact. The application of tape to these areas ensures that double and even triple patches remain in place and so do not affect the integrity of the veneer. This is especially important where patches are applied at the edges of veneer sheets. · In subsequent production phases where veneer sheets may be subjected to harsher handling, such as on the scarf-jointing, composing and lay-up lines. Here, the tape assists in saving raw material and improving product quality. In addition, fewer stoppages can be expected in the production process caused by equipment and machinery failures. At the beginning of the development work, 19 mm wide tape was used. However, it was determined that this width IMPROVEMENTS IN YIELD AND QUALITY CAN BE ACHIEVED BY MAKING RELATIVELY SMALL CHANGES IN THE PRODUCTION PROCESS. of tape did not adhere well enough to the surface of the veneer, especially softwood veneer, where surface roughness caused problems and there were difficulties with the tape staying in place. Also, the ends of the tape tended to curl up after application. To solve this problem a tape with better adhesive qualities was used, which required that the tape cutter be updated. The cutter has a coating applied, which keeps it clean and sharp for an extended period of time. OPERATION AND POTENTIAL OF THE TAPE MACHINE The tape applicator is engaged either by foot pedal or a push button. An ergonomically designed model incorporating a radio transmitter will also be available shortly. The radio transmitter will be incorporated into the operator's safety glove and will be activated by the operator pressing a button. The operator can also use this function to change places when working. A tape machine mounted on an automated line is started directly by the line's control logic. This tape applicator can also be adapted for use in other lines as well, such as scarf-jointing, composing and other patching lines. Maintenance is fairly simple and the device is easy to maintain. Tape bridges are cleaned weekly using a solvent and, where necessary, the tape cutter and magnet is replaced. Cleaning takes less than 10 minutes. Replacing the tape roller will depend on the species of wood being taped and the diameter of the roller. SIGNIFICANT POTENTIAL This new veneer tape applicator has the potential to be installed in a production line supplied by Raute where its purpose will be to improve the quality of the production process, or it can be supplied as a stand-alone unit. In whatever application it is used, it has the potential to improve the operational capability of veneer patching, scarf-jointing and composing lines. · Text: Erkki Kauranen Photos: Veli-Matti Lepistö PLYVISIONS 9 CONTINUOUS DEVELOPMENT guarantees competitiveness RAUTE´S STRATEGIC GOAL IS TO BE A `FULL-SERVICE HOUSE', THE GLOBAL LEADER IN THE DEVELOPMENT OF TECHNOLOGIES AND SERVICES FOR THE PLYWOOD AND LVL INDUSTRIES. FURTHER, IT IS OUR AIM TO ASSIST CUSTOMERS IN GENERATING ADDED VALUE THROUGHOUT THE LIFE-CYCLE OF THEIR INVESTMENTS. TO ENSURE THIS, we are continuously developing and improving the technology and services we provide. Costefficiency is now more important than ever, given the present difficulties of the market and the global economic situation. For most producers, current focus is to improve existing production, rather than building new. Good raw material recovery, lower consumption of adhesives and other additives, as well as savings in energy and labor costs are important considerations in the present market situation. Even small improvements in these areas can have very positive effects on profitability. Over the past several years Raute has invested significantly in develop- 10 PLYVISIONS ing products and services that offer fast payback, enabling producers to improve their production processes step-by-step, rather than through single, large investments. DEVELOPMENT WORK IS ADVANTAGEOUS FOR BOTH THE CUSTOMER AND RAUTE Raute understands that customers' mills operate to very demanding schedules, often around the clock. That's why proactive maintenance and timely modernizations are important, ensuring that the life-cycle of machinery is maintained and extended. Raute products are designed such that new technology can be applied to existing machinery through the modernization of existing production lines. With respect to productivity and quality, the results can be remarkable. But, what does this mean in real terms to our customers and how can it be utilized in the daily operations of their mills? The starting point for any development program is the understanding that things can always be done better and more effectively. This applies to both machinery and production processes. It is, therefore, of utmost importance that shortcomings and inefficiencies be recognized and turned into positive development opportunities, so that producers can improve their competitiveness in the ever-changing business environment. The correct solution is found in the versatile range of specialized mill auditing services we provide. Audits are performed using field-proven methods and the results are reported to the customer. Recommendations based on these results are typically divided into two main areas: 1) recommendations regarding actions that need to be undertaken immediately, including reasons for doing so and payback calculations, and; 2) actions, which can include investments, to be taken over a longer period. Customer mills are able to utilize these auditing reports for planning and budgeting purposes for some years to follow. Recommendations contained in these audit reports usually include specific matters that focus on the development of production processes, the implementation of technology and the training of mill personnel. Raute specialists are able to define essential development targets and recommend a diverse range of development actions based on their long experience in the plywood and LVL industries globally. of older machines and production lines. New technologies are implemented most efficiently during planned mill shutdowns. New in-line measuring and monitoring technology, together with advanced grading automation, help to maximize production efficiency and reduce the impact of production on the environment. IMPROVING THE COMPETENCE OF MILL PERSONNEL The training of mill personnel must accompany the development of new processes and technologies in order for their benefits to be utilized quickly and effectively. To ensure this happens, Raute has developed a versatile range of modular training packages. They are a natural continuum to the training provided during the startup of a production line. Modular training enhances the skill sets of the equipment operators and allows mill personnel to take full advantage of all features of the line. In addition to these modular training packages, Raute offers tailor-made training to meet the specific requirements of each mill. A training session or program can be constructed based on the results of a needs survey. Compiled in conjunction with the customer, it is designed to fit the specific needs of that mill's personnel. MODERNIZATIONS IMPROVE EFFICIENCY AND THE ENVIRONMENT Raute´s mission is to develop and generate new innovations and products that help our customers continuously develop the competitiveness of their own mills as well as that of the global wood products industry. Our service commitment covers the entire life-cycle of the investment. Over the duration of its service life, Raute machinery can be adapted to suit changing market needs. This can be achieved in several stages. Naturally, regular, proactive maintenance and the use of high-quality spare parts play significant roles. Customers will find their cooperation to be of most benefit when they have a maintenance contract with Raute. Raute has developed, and continues to develop, modernization packages that utilize modern technology to boost and improve the competitiveness REGULAR EVALUATION ENSURES CONTINUITY In order to maintain the continuous development of our customers' production processes and to sustain their profitability, it is important that they work together with us to track the progress of our planned cooperative actions and how they are performing relative to the value-added targets set. This is done during `joint development days', which are held with contract customers annually and form the basis for the future development of cooperation between Raute and our customers. · Text: Timo Kangas FROM AUDIT TO DEVELOPMENT Raute's full-service concept incorporates a broad range of proven services and products that can be utilized in developing the profitability of our customers' mills throughout the life-cycles of their investments. Optimum results are achieved by first determining the target to be attained and then undertaking a comprehensive analysis in order to determine the proper output level. This applies to a single machine, a production line or an entire mill. PLYVISIONS 11 RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN INSIGHT INTO THE RUSSIAN PLYWOOD INDUSTRY RUSSIA'S SHARE OF THE WORLD'S FOREST AREA IS AROUND 22% ­ CLOSE TO 800 MILLION HECTARES. THE AMOUNT OF WOOD RAW MATERIAL IN THE FORESTS IS 80 BILLION M3, WHICH IS ABOUT 25% OF THE WORLD'S WOOD RAW MATERIAL. THESE ENORMOUS WOOD RESOURCES PROVIDE RUSSIA WITH MANY POSSIBILITIES FOR THE FUTURE OF THEIR WOOD PRODUCTS INDUSTRY. NEARLY 80 PERCENT of Russia's wood resources are situated close to Asia. The resources are largely unutilized, as annual growth is around 0.8 billion m3 and annual logging accounts for only 200 million m3 or so. The potential, therefore, is huge making the future of the wood products industry in Russia appear very bright indeed. In recent years, the Russian plywood industry has made substantial investments in modernizing its production machinery and the processes of its existing plywood mills. New greenfield projects, however, have also been undertaken in the region and Russian plywood has fast entered world markets. Positive financial development prior to the current recession in Russia is one of the key factors that has enabled the development of the country's plywood industry. The banks have been willing to grant loans to industrial companies and the wood products industry has been seen as a good investment opportunity. Russia has long experience in wood processing and a strong scientific and technical base. Fairly low production costs have enabled profitable plywood production. Affordable labor has been available, and there are several woodfocused universities offering quality education to meet future needs. There is an abundance of raw material, even though a relatively poor infrastructure and lack of a good road network have prevented the full exploitation of the raw material resources to date. Energy, on the other hand, is readily available in many forms. There is also strong political support for the wood products industry in Russia. FACTS AND FIGURES Approximately 2.8 million m3 of plywood is produced in Russia annually with 90% of production being situated close to Europe. The main raw material is birch. Most of the plywood mills still produce 5x5 ft plywood for the domes- 12 PLYVISIONS RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA tic market. New production capacity, however, is mainly targeted towards the global market and is made up of largesized plywood. Old production processes are being modernized to fit the global market plywood size standards. There are more than 70 plywood mills in operation, 30 of which can be considered small mills. The ten largest mills account for about 50% of the country's plywood production. Although the proportion of export sales is near 60%, domestic demand is growing faster than that of the export market. Sveza Group, which owns 6 mills among the 10 largest, dominates the production scene. Currently, there are two LVL mills in opera- THE FUTURE Russia has a long tradition in the wood processing industry. Wood is considered a natural and ecologically sound material and its use is on the rise in Russia. The use of wood in construction continues to see demand for this product grow domestically in line with the growing trend in residential construction. The plywood industry in Russia is profitable, thanks to low production costs. New applications for the use of softwood plywood and LVL are being developed. Plywood is needed for building infrastructure, where the largest application is overlaid plywood used >> RUSSIA HAS LONG EXPERIENCE IN WOOD PROCESSING AND A STRONG SCIENTIFIC AND TECHNICAL BASE. tion in Russia and all their production is exported. It is the lack of local standardization of LVL products that restricts its use in Russia. PLYVISIONS 13 RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN 14 PLYVISIONS N RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA >> as concrete shuttering. The transportation and shipbuilding industries also use substantial amounts of plywood. The furniture industry, too, has shown signs of recovering from the recession and it will consume a significant amount of plywood and veneer in the future. It is estimated that the size of the furniture industry will almost triple by the year 2015. All in all, the use of wood products will increase. Renewable wood material is seen as an ecological and safe choice. Export opportunities will grow as export regulations further relax. Furthermore, Russia's plans to develop the forest sector will help promote the realization of investments. · Text: Molli Nyman and V.A. Prohorov Photos: Veli-Matti Lepistö The largest plywood producers in Russia 2010 COMPANY Syktyvkar Plywood Mill LLC Permsky Plywood Mill LLC CJSC Fankom Ilim Bratsk DOK LLC CJSC Zheshart Plywood Mill JSC Fanplit 1 JSC Fanplit 2 JSC Ust-Izhorsky Plywood Mill CJSC Krasny Yakor CJSC Arkhangelsky Plywood Mill Sveza GROUP LOCATION Syktyvkar Uralsky PROVINCE Komi Perm Irkutsk Komi Kostroma Kostroma Kirov Arkhangelsk WOOD SPECIES Birch Birch Birch (80) and pine (90) Pine (120) and larch (20) Birch Birch Birch Birch Birch ESTIMATED CAPACITY, m3/a 190 000 180 000 170 000 140 000 120 000 110 000 110 000 110 000 110 000 105 000 Verkhnyaya Sinyachikha Sverdlovsk Ilim Timber Industry Bratsk United Panel Group Zheshart Sveza Sveza Sveza Kostroma Kostroma St. Petersburg Slobodskoi Novodvinsk St. Petersburg Birch PLYVISIONS 15 RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RAUTE IN RUSSIA: From war reparations to solid cooperation Raute and Russia share a common history that began during World War I with the Soviet era. Raute began manufacturing plywood machinery in the 1930s and during WWII focused on the manufacture of munitions. Between 1944 and 1952 Raute supplied approximately 1,200 machines as part of Finland's war reparations to the Soviet Union. Once the payment of war reparations was completed, the two nations moved towards cementing bilateral trade, which saw Finland, and Raute in particular, supplying machinery and expertise to the Russian wood products industry. In the 1960s, Raute made the move from manufacturing stand-alone machines for wood processing to manufacturing complete production lines and mills. Raute delivered the first complete plywood mill to Bratsky (Bratskiy LPK) in 1970. The Soviet Union (1922­ 1991) was, in its day, the fourth biggest plywood producer in the world, after the U.S., Japan and Canada. Seventy-four plywood mills were in operation, however, machinery operated at a low capacity level and the production processes were highly mechanical with little automation. As a result, the costs associated with production were many times those of the U.S. and Canada. Beginning in the 1970s, the Soviet Union's plywood mills began to be modernized and refurbished, with new mills being systematically built from that time through the 1990s. The upgrading and general revitalization of plywood production machinery was made easier by the clearing system between the Soviet Union and Finland concerning the trading of goods and methods of payments. Raute delivered a wide range of machinery and complete production lines to the Soviet Union, such as individual lathes and complete green veneer peeling lines, veneer drying lines, composing and jointing machinery, plywood presses and trim saw lines, as well as all required spare parts and testing equipment. The majority of veneer being produced at Russian plywood mills these days is produced using Raute peeling lines. Current cooperation is based to a large degree on the modernization of existing production equipment and on Raute's technology services. There is a clear need to increase local know-how and to finetune existing production so that it continues to become more efficient and profitable. Along with the growth in demand for wood and plywood, the building up of new production capacity will provide the Russian plywood industry with a greater competitive edge over other countries. Raute's Moscow office was established in 1992. Raute Service LLC, which focuses on maintenance services, modernizations and training, began operations in St. Petersburg in 2005. · Text: Molli Nyman and V.A. Prohorov Photo: Eino Mäkinen 16 PLYVISIONS RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA New Greenfield project in Russia OOO VYATSKIY FANERNYI KOMBINAT (VFK) IS LOCATED IN RUSSIA IN THE CITY OF KIROV (FORMERLY VYATKA) IN THE INDUSTRIAL REGION OF NOVOVYATSK LPK. TWO FIBREBOARD MILLS, A SAWMILL AND A WOOD PRODUCTS PLANT ALL OPERATE AT THE SAME INDUSTRIAL SITE. THE PLYWOOD MILL WAS STARTED UP IN JANUARY 2009, FOLLOWING A YEAR-ANDA-HALF-LONG CONSTRUCTION PERIOD. THE BASIS FOR THE PROJECT ITSELF, HOWEVER, HAD ALREADY BEEN LAID TWO YEARS EARLIER IN 2007. CONSTRUCTION PLANS for the new plywood mill called for a facility that would produce 90,000 m3 of large-sized birch plywood panels annually. Approximately two-thirds of that amount was slated to be overlaid with paper-based protective films, which would make it suitable for use as concrete formwork in construction and for the manufacture of truck beds and other vehicle components used in transportation. Close to 90% of production was to be earmarked for export, with the rest being supplied to Russia's domestic markets. Financing of the project was provided by the forest industry holding company ZAO Investlesprom, which has been increasingly investing in forest industry projects in close cooperation with OAO Bank Moskvy. Financing was approved for construction of VFK in December 2006. The total value of the investment exceeded 3.2 billion rubles, or approximately 80 million euros. CHOOSING THE SITE AND SUPPLIERS FOR THE PROJECT Many factors were behind the choice of Novovyatsk as the site for the mill, the most significant being the availability and adequate supply of raw material. Forest resources in the Kirov area are approximately 800­900 million m3, of which birch makes up more than 340 million m3. Only one other plywood mill operating in the area, Krasnyi Jakor, utilizes the birch plywood logs harvested >> PLYVISIONS 17 RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN >> annually in the Kirov area. In addition, it was possible to use existing municipal engineering in the area as well as Novovyatsk's LPK infrastructure, which included a rail link. All of the contractors involved in the planning and construction of VFK were chosen on the basis of a call for tenders. The primary design company selected for the project was OOO Kostromapromproekt. A contract was subsequently signed in April 2007 for "A project to build a mill with the capacity of 90,000 m3 of large plywood annually in the city of Kirov in the area of Novovyatsk." Raute was selected as the primary machinery supplier from among 11 foreign companies, three of which offered mill-scale deliveries ­ one an Italian company, one from Japan and Raute. produced 47,000 m3 of plywood. In 2010, monthly production was around 7,500 m3 of plywood with the mill still able to operate at 90% of rated capacity, despite the generally low economy. The start-up of the mill was aided by a number of factors, such as the timing of the investment, the correct choices of technology and machinery, flexible production, the possibility to produce two different sized panels and the professional skills of the staff involved. APPROXIMATELY 90% OF THE PLYWOOD PRODUCED IN RUSSIA IS MADE ON MACHINERY MANUFACTURED BY RAUTE. The machinery and equipment delivery contract between OOO VFK and Raute Corporation was signed in November 2006. Machinery was delivered during 2007 and 2008. In early January of 2009, VFK was started up and already in the same year RAUTE HAS SOLID KNOW-HOW AND REFERENCES Raute was selected as the primary machinery supplier for the mill for a number of reasons. Raute has more than 100 years' experience in the manufacture of machinery for the wood products indus- 18 PLYVISIONS RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA try and is the biggest company worldwide specializing in mill-scale deliveries of this kind. Over the past 25 years, too, Raute has developed new technology, such as six new lathe models, plywood lay-up lines, and drying and grading line. Approximately 90% of the plywood produced in Russia is made on machinery manufactured by Raute. All the major producers in Russia have Raute machinery in their mills. There are also many single processing lines and standalone machines manufactured by Raute in operation in different plywood mills throughout the CIS countries. These strong references, together with Raute's wide range of technology and our ability to serve our customers in the Russian language were also important factors in our securing this important project. EFFICIENCY AND CERTIFICATION PLAY AN IMPORTANT ROLE Raute's machinery is efficient and highly automated. The two Smart Peel peeling lines included in the contract, for instance, can peel the required amount of veneer to make 90 to 100,000 m3 of plywood annually. As a turnkey supplier Raute also bears responsibility for the capacity of every line and for the compatibility of the lines. One of the decisive factors behind Raute receiving the machinery order was that its products are certified for operation in Russia. Raute carries the Russian GOST standard certification, which means Raute machinery can be used to manufacture plywood that complies with the ISO 9001 quality standard. It also carries the CE stamp for plywood deliveries to EU countries, as well as the DIN 68705, part of the 3BFU100 (Germany) permit for using the products in construction. In addition, Raute provides an extensive range of services, such as maintenance, spare parts and personnel training. This versatile service offering, combined with Raute's commitment to producing the most up-to-date technology available for undertaking equipment modernizations and upgrades, ensures that the competitiveness and profitability of the production process will be continuously developed throughout its entire life cycle. · Text: Molli Nyman & V.A. Prohorov PLYVISIONS 19 RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN Vyatskiy Fanernyi Kombinat invests in new birch plywood mill ACCORDING TO THE GENERAL MANAGER OF RUSSIA'S VYATSKIY FANERNYI KOMBINAT (VFK), MR. JURIY SHADRIN, THE IDEA TO INVEST IN A MILL TO PRODUCE BIRCH PLYWOOD WAS SIMPLY A FLUKE THAT CAME ABOUT WHEN INVESTORS INVESTLESPROM ACQUIRED KDP "NOVAYA VYATKA". "BEING THAT KDP WAS A PRODUCER of MDF, Mr. Juriy Valevin, the then General Manager of KDP, got the idea to produce large-sized plywood and, by doing so, develop the company's industrial business sector, " said Mr. Shadrin. Located in the Kirov region of Russia, financial support for the project came from Bank Moskvy and in May 2007 construction work on the project began. Installation of the machinery and equipment began as early as October that same year and took 12 months to complete. In the section of the building where heating was available the machinery was installed, while in the unheated section of building construction work was carried out. The first veneer was produced in July 2008 and the first batch of plywood in November of that same year. A month later the entire mill was in production. "We are especially proud of the fact that our mill, which is certainly one of the most modern plywood mills in the industry, was built up from "zero" to near full production in just eighteen months," said Mr. Shadrin. In April 2009, installation and fine-tuning of the panel coating line were completed. Today, the mill produces approximately 7,800 m3 of plywood per month, which satisfies planned capacity of 90,000 m3 annually. A percentage of production will be FSF-stamped water-resistant product. Product dimensions will be 1,220 x 2,440 mm; 1,250 x 2,500 mm; 1,500 x 3,000 mm, and 1,525 x 4,050 mm in thicknesses ranging from 6.5 to 30 mm. Mr. Shadrin explained that Raute was chosen as the primary supplier for all plywood machinery based on the company's ability to provide an overall solution for the entire production chain, starting from raw material handling and cutting, through peeling, drying, veneer handling and pressing. Raute even supplied knife sharpening equipment and equipment for packaging the finished product. "We felt that Raute was the only supplier who could have a positive impact on the construction period of the mill and make it easier to organize the process, familiarize staff with their work, and provide the correct level of technical maintenance and fine-tuning for the machinery," said Mr. Shadrin. "In fact, the latest technology and machinery available from Raute has been installed in VFK's new birch plywood mill and it has proven to be very good. And, although the warranty periods for machinery have already expired, Raute has continued to be involved in the operation of the machinery and has been active in helping us solve the inevitable "bottlenecks" that are typical of start-ups such as this. We are very satisfied with both the technology provided by Raute and their operation in supporting us," Mr. Shadrin added. · 20 PLYVISIONS RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA RAUTE IN RUSSIA LESDREVMASH 2010: LESDREVMASH IS A MAJOR INTERNATIONAL EXHIBITION AND TRADE FAIR HELD IN RUSSIA EVERY TWO YEARS. ITS FOCUS IS ON MACHINERY, EQUIPMENT AND TECHNOLOGY ASSOCIATED WITH THE WOOD PRODUCTS INDUSTRY. A solution for every budget In support of this theme, Raute's R&D Department had devoted considerable effort prior to Lesdrevmash 2010 in the development of new technological solutions that combine years-long experience with the latest innovation. At the exhibition we introduced one of these new products to the Russian market ­ the new RautePro XY charger, which offers plywood producers the opportunity to quickly and easily update their outmoded block charging and centering systems. Read more about this new product in PlyVisions, page 4. Raute wants to express our thanks to the many industry people and customers who visited our stand at Lesdrevmash 2010 and we look forward to fruitful cooperation in the future. · Text and photo: Ossi Lahtinen FIRST HELD IN 1973, Lesdrevmash took place this past year in Moscow and ran from September 27th to October 1st. Over 500 organizations and companies from 23 different countries took part. At Lesdrevmash 2010, it was clearly evident that Russia is coming out of the financial crisis that has plagued the world economy in recent years and that the foundation for renewed growth is being laid. Large delegations of Raute's customers were in attendance and it was quite usual to see senior members of our customers' staff, including Presidents and CEOs, at our stand. The seven wood products professionals representing Raute were kept constantly busy as customer after customer presented themselves at our stand eager to hear about our the new products and services Raute had on offer. Raute's theme for Lesdrevmash 2010 was "For every budget Raute has a solution". This theme emphasized that Raute not only provides the most advanced, technologically complex and, therefore, potentially expensive range of machinery and services, but that we also offer products that serve the individual needs of every customer, based on their requirements and the budgets they have available. PLYVISIONS 21 Italian producer is up to the challenge THE ITALIAN PLYWOOD AND BLOCK BOARD PRODUCER, SAN GIORGIO SPA, CELEBRATED FORTY YEARS IN BUSINESS IN 2009. THEY ARE A SMALL, FAMILY-OWNED PRODUCER WHOSE EFFORTS ARE INSPIRED BY RESEARCH, A CONTINUOUS DEVOTION TO QUALITY IMPROVEMENT AND AN UNWAVERING COMMITMENT TO CUSTOMER SERVICE. PRESIDENT MASSIMO MASSONI sees the success of his company as being rooted in its ability to provide a flexible product mix, supported by what he calls a customer care approach. "We operate in a challenging market and we must be flexible in the products we provide. This means offering special panel sizes and small batches," he said, adding that San Giorgio is able to do so by understanding the needs of their customers and finding solutions to their specific needs. He went on to say that, "It is also important that we remain customer oriented, since we do not compete in the large-scale commodities business. Personal contacts and assurances are a key part of the way San Giorgio does business. It helps, too, that we are centrally located with respect to our customers." Situated in Villanterio near the historic city of Pavia, Italy, the Massoni family's company employs a staff of forty-five, including Massimo's wife Monica and, since September 2008, son Nicola, who oversees certain technical and commercial aspects of the day-today running of the company. San Giorgio produces both poplar and birch plywood, as well as blockboard. Poplar products are produced from local wood, while birch veneer is produced at the mill in Shatura, Russia, which the Massoni family owns jointly with their Russian partner. Located 120 kms east of Moscow, the Shatura mill has been operating since 1997 and is under the management of San Giorgio's Franco Stilio, who has been at the mill since it opened. The mill operates with a staff of fifty and produces about 17,000 m³ of birch veneer annually. "We offer a specialized range of products for the furniture, transportation, flooring and laser plywood industries," stated Massimo. "In 2009, San Giorgio produced 10,000 m³ of plywood and 6,000 m³ of blockboard, which was sold to customers in Germany, Austria, Spain, the Netherlands and the U.S.A. Our domestic customers bought about one-third of our production." INVESTING DURING DIFFICULT TIMES Massimo Massoni understands about the need to invest in order to succeed. Over the past decade his company has undertaken significant capital expenditure on numerous occasions, often selecting Raute as the primary supplier. "At the beginning of this new millennium it was very difficult to be in the plywood industry. That's when we took 22 PLYVISIONS AT THIS MOMENT THE OVERALL PLYWOOD MARKET SITUATION IS VERY CHALLENGING, BUT I AM TRUSTING IN THE FUTURE. the decision to develop our business by investing in our factory. This meant widening our scope of production by making larger panels so that San Giorgio would be in a stronger position when business improved," said Massimo. "I knew the Raute company and some of their sales and technical staff and I found the solutions they offered were suitable and met my needs. I can honestly say that my decision to work with Raute was the correct one." The investment made by the mill in 2001 included a Raute scarfing line, semi-automatic layup line complete with glue spreader and a big size 10-opening pressing line. Fast forward to 2008 and San Giorgio's decision to again choose Raute as their veneer composer and glue spreader supplier. Said Mr. Massoni, "During the period surrounding our previous investment project with Raute, we learned much about new production technology. It was a well managed project supported by quality machinery and a high level of technical service, both during and after the warranty period. This convinced us to go with Raute on this composer project." San Giorgio's project team worked with Raute's technology people to find the best technical solutions, as well as the optimum location for the new line in the mill. According to management, the new composing line has provided better raw material recovery as well as providing flexibility in veneer sizes that will improve San Giorgio's ability to serve their customers. "While the composer was being installed, we were undertaking other investment projects in our mill, including installation of a new 3 MW boiler. I am extremely pleased that we were composing veneer only two weeks after starting the installation," stated an obviously satisfied Massimo Massoni. "I am pleased, also, that the composer was so thoroughly tested at Raute's Nastola factory before shipment and that our control specialist, Mr. Angelo Bascape, was able to participate in the testing and disassembly at Raute's factory. This ensured that everyone knew what to do once the machinery arrived at our mill and helped to ensure that the installation and start-up went smoothly. Many thanks belong to Raute's professional project and start-up crew and to our own personnel," added Massimo. A further investment undertaken by San Giorgio included the start-up of a lay-up and pressing line in April 2009, which will enable the mill to produce film-faced plywood and special-sized white plywood and blockboard ­ 5+ meter long and 6+ meter long respectively. New laboratory testing equipment was also supplied with the delivery. San Giorgio now employs a full-time laboratory engineer who is charged with the responsibility of product testing and the investigation and development of new products. LOOKING AHEAD WITH A POSITIVE VIEW Massimo Massoni is a practical and pragmatic company owner. "At this moment the overall plywood market situation is very challenging, but I am trusting in the future. For instance, ecological issues are very important today and we have to work hard to promote the ecological aspects of Italian poplar plywood ­ its rapid renewal, its strength and its very light and white colour that make it the premier quality poplar in Europe. These very positive attributes will assist Italian producers of poplar plywood to better serve their customers and improve the Italian poplar plywood industry as a whole." As to the future, Massimo stated positively that he has specific expectations for Raute to meet."Very soon it will be time to begin planning investments connected with improvements in raw material recovery and panel quality." In the meantime, however, this Italian plywood producer will fine-tune the working of his successful business in order that it is in the best possible shape when the full power of the plywood industry is restored. · Text: Sauli Salmela Photos: Veli-Matti Lepistö President Massimo Massoni (left) and his son Nicola Massoni. Composed poplar veneer sheets. PLYVISIONS 23 EXPERTISE IN PLYWOOD AND LVL TECHNOLOGY www.raute.com SPARE PARTS = AVAILABLE ONLINE, ON TIME, ON BUDGET To keep your production running at peak efficiency, Raute provides competitively priced spare parts, maintenance and modernization services that are available online, on time and on budget. It's all part of our commitment to provide support throughout the life-cycle of your investment. Register now at www.service.raute.com and get a 10% discount on your first online spare parts order! This service is now available also in the U.S.A and Canada. 24/7 TECHNOLOGY UPGRADES MODERNIZATIONS SPARE PARTS MAINTENANCE TRAINING