R

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RD trends and challenges for co-operation

• Lars Gädda
• M-real

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Introduction

• Initiated by KCL Research Committee
• Lot of excellent publications analysing Forest
  Industry
• Questions as
• What is the future of printed media?
• What is the future of fiber based packaging?
• Future growth and competitive advantage?
• Future skilled personnel?
• Finacial resources?
• Future raw materials?
• were raised as a start of this study.

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Present situation and change drivers 1. Printed
media

• Role of paper has changed and will change also in
  future
• Information is developed for different channels
  in the modern media industry value chain
• New information and communication technologies
  are developed due to very high development
  investments
• Traditional print will keep an important role in
  communication due to its excellent usability and
  cost efficiency

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Present situation and change drivers 2. Packaging

• Role of packaging is and will remain important
• Driver in packaging is food industry and related
  packaging applications
• Competition between different material solutions
  is a fact
• Fibre based solutions has clear advantages in
  rigid packages
• Information technology and e-commerce will most
  probably increase the need of good packaging
  solutions

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Present situation and change drivers 3.
Industrial stuctures

• Globalisation
• Consolidation, big players in Nordic Region
• Drivers, advertising and food packaging
• Short term result focus
• Need to secure competence base
• Increasing competition among companies
• Future of printed media
• Secure RD funding both short and long term

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Present situation and change drivers 4. Strong
technology based forest cluster

• Finnish industry is strong in applying technology
• High quality technology investments, however,
  average age increasing (20 years)
• Finnish forest cluster technology leader, clear
  evidences lacking (eg. patents)
• Cost efficiency a must
• Renewal of technology not market driven
• Cluster cooperation with suppliers important
• Modest investments in RD and new developments

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Present situation and change drivers 5. Education

• Two thirds of European paper engineers are
  educated in Finland
• A rough balance between need and demand (educated
  personnel) in Finland
• 60 of production assets are in Europe, lack of
  human resources
• Need to improve the image of our industry
• Education of BScs to become experts in paper
  industry

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Future Challanges Definitions

• Target Topics to be influenced
• Actions Short description of desired
  results
• Strategy Continuous improvements
• Business support
• New strategic knowledge

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Future Challanges Definitions

• Fundamental Large "R" and small "d"
• is a scientific/ technological reach into the
  unknown
• Exploratory Large "R" and often large "D"
• draws on a foundation of existing scientific and
  engineering knowledge, insufficient alone to
  arrive at desired practical result
• Incremental Small "r" and Big "D"
• is small advances in technology, typically based
  on an established foundation of scientific and
  engineering knowledge

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Future Challenges Our Important Customer
IndustyWhat is the future of printed media??
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Future Challenges Our Important Customer
industyWhat is the future of fiber based
packaging??
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Future Challenges Alternative media and
functional packagesWhere is our future growth??
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Future Challenges CompetencesFuture competences
and human resources??
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Future Challenges Technology, Products and
processesHow to secure Future financial
resources??
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Future Challenges Raw material resourcesFuture
raw materials/ Energy
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Future Challenges Raw material resourcesFuture
raw materials/ fibres, chemicals, pigments??
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Future Challenges Conclusions and Actions 1

• Securing availability of competences and
  resources
• Securing alert and high quality RD activities
  and corresponding funding
• Securing competitiveness of the printed media
  today and tomorrow
• Securing competitiveness of existing tangible
  investments, cost competitiveness and quality
• Exploring and searching for new growth areas for
  paper and packaging products

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Future Challenges Conclusions and Actions 2
5. Look for cooperation and research in
cross-scientific and cross-industrial
areas 6. Conduct fundamental (basic) research in
areas as Material Science
- for high quality printing surface
- structures of paper and coating
- use of biocomponents
7. Information technology
- modelling
- smart
structures and applications for paper and board
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The changing publishing model
The old paper model
The new network model
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Active packages

• Prevent spoilage with e.g. protective gases
• Self-heating and self-cooling beverages
• Systems, which indicate
• package breakage
• harmful bacteria concentration
• correct storage/consumption temperature
• time-temperature history

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Organic electronicsOrganic transistor
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Need for wood of Forest industry
Other wood waste for energy use
Circular wood for energy use
Felling waste for energy use
Traditional firewood
Domestic wood for industry
Net import
Domestic
Foreign
Actual
White book
Foresters
Minimum load
Source
Future Challenges Raw material resources Future
raw mate...Back
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The biggest forest companies in Europe and in the
worldTurnover 2002, milj. USD
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THE SUPPLY AND NEED FOR PAPER ENGINEERS IN
FINLAND- IN YEAR LEVEL -
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GRADUATED PAPER ENGINEERS IN EUROPE 2002
Finland total 190
Oulu
Trondheim
Other Europe total lt 80
Tampere
Sundsvall
Lappeenranta
Turku
Karlstadt
Helsinki
Stockholm
Göteborg
Manchester
Dresden
Darmstadt
Munchen
Graz
Grenoble
Barcelona
M.Sc.- level estimate
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THE DEVELOPMENT OF COMMUNICATION'S VALUE CHAIN
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The professorships and gross value of
productionat forest sector in Finland
Bruttoarvo 5 mrd. EUR
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GROWTH OF SELECTED CARTONBOARD END USE SECTORS
IN W.EUROPE IN THE 1990s
Frozen ready meals
Pharmaceuticals
Soft drinks
Graphical
Frozen food
Yogurt
Ice cream
Bakery
Confectionery
Detergents
Beer
Tea
Coffee
Wine, spirits
Cigarettes
-2
0
2
4
6
8
10
Total sector volume growth /a in the 90s
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Patents
1997-1999
2000-2002
250
228
215
204
200
172
150
100
74
66
57
53
50
27
21
4
3
2
2
2
0
0
0
0
0
0
0
0
Sappi
Burgo
Metsäliitto
Stora Enso
CVC Lecta
Myllykoski
Norske Skog
Mayr-Melnhof
MeadWestvaco
UPM-Kymmene
International Paper
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Structural change of forest industry in Finland
STORAENSO
METSÄLIITTO
AHLSTROM MYLLYKOSKI STROMSDAL SUNILA
UPM-KYMMENE
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Magazine Advertising expenditure - Europe in USD
billion at current prices
The Publishing and Commercial end uses are mainly
advertising driven

Share of total ad spend
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Zenith July 03
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