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CREATING VALUE THROUGH COOPERATION

CREATING VALUE THROUGH COOPERATION. Cooperatives. Efficient solution for wood mobilisation wealth generation in family forest ownership conditions Succesful examples - small & large scale local heat generation cooperatives Using wood from young stand thinnings

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CREATING VALUE THROUGH COOPERATION

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  1. CREATINGVALUE THROUGH COOPERATION

  2. Cooperatives Efficient solution for • wood mobilisation • wealth generation in family forest ownership conditions Succesful examples - small & large scale • local heat generation cooperatives • Using wood from young stand thinnings • large scale forest industries • Metsäliitto Group • Södra

  3. Metsäliitto Group • Tenth largest forest industry group in the world • Sales EUR 9.3 billion • Personnel 25 000 • Production units and sales offices in 30 countries • 130 000 owners of private forests in Finland: • 5.3 million hectares of forests • 48% of all private forests M-real Paper and Board Sales EUR 5.6 billion Metsä-Botnia Pulp Sales EUR 1.3 billion Metsäliitto Cooperative Wood Supply Wood Products Industry Sales EUR 3.5 billion Metsä Tissue Tissue and Cooking Paper Sales EUR 0.8 billion

  4. Focus in EuropeMetsäliitto Group (incl. Moelven) production plants Metsäliitto Wood Products Industry (Finnforest) + Moelven Metsä-Botnia M-real Metsä Tissue Head offices, Espoo

  5. Business idea Customers Forest owners Metsäliitto • procures and markets wood raw material produced by its members as efficiently as possible Marketing Supply Processing Transport To increase the shareholder / forest owner value

  6. ML-93 70 M Optimisation through data network 400 harvesters 400 forwarders Transport planning GPS GIS Wireless transmission 420 trucks 350 foremen 100 mills Sap R/3

  7. Group history 2001 Thomesto 2005→ Metsäliitto 1986 Metsä-Serla 2001 → M-real 1973 Metsäliitto Group 1948-59*Metsäliitto Cooperative’s first industrialisation period 1947Metsäliitto Cooperative 1990 Finnforest 2006 → Metsäliitto 1977 Metsä-Botnia 1934Metsäliitto Oy *1953 Metsäliiton Selluloosa Oy founded Purchase of Wärtsilä Selluloosa Oy’s capital stock 1997 Metsä Tissue

  8. Wood purchases from private forests in Finland million m³

  9. Wood utilisation in Finland 2005 1 000 m3 Kemi 2 400 KaskinenMerikarvia 2 000 Rauma 2 600 ÄänekoskiSuolahti 2 600 Vilppula 1 400 Kuopio 600 LohjaKirkniemi 800 Renko 600 TampereKyröskoski 1 000 Joutseno SimpeleMyllykoski Sunila 5 100 Eskola 140 Kyrö 370 Lappeenranta 520 Soinlahti 440 Punkaharju 400 Exports 160 Metsäliitto’s wood purchases Metsäliitto Group’s production units: 19.7 million m3 Total: 24.1 million m3

  10. Cooperatives providesolutions • Effective wood mobilisation • Marketing channel for members’ wood • Raw material use optimisation • Councel and forest management services for forest owners • Promotion of sustainable forestry • Wealth creation from renewable source

  11. It actually works!

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