22 January 2019 1 2 Use of Eucalyptus at Kinleith Mill - PowerPoint PPT Presentation

EPA Hearing 22 January 2019 1

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Use of Eucalyptus at Kinleith Mill • Eucalyptus is the hardwood species of choice for commercial, technical and operational Lumen reasons Tertiary Wall • Eucalyptus is chipped on site at Kinleith Mill and pulped in the No3 continuous digester • Pulping process is NSSC (neutral sulphite semi Main Body of chemical) Secondary Wall • High yield (70-75%) • The eucalyptus pulp is used exclusively on the Outer Layer of Secondary Wall No6 paper machine at Kinleith Mill which Primary Wall manufactures kraftliner and semi chemical Lignin medium • Kraftliner and Semi chemical medium are high Adjacent Fibre performance grades used by the corrugated Adjacent Fibre packing industry in New Zealand 3

Eucalyptus Pulp and Packaging • Eucalyptus pulp compliments radiata and recycled pulp when manufacturing high performance papers • Eucalyptus pulp improves compressive strength properties of Kinleith papers, complementing the containability achieved with softwood fibre • High yield Eucalyptus pulp contains residual lignin which “sets” during the corrugating process resulting in high strength corrugated board • Hardwood fibres are shorter than softwood. This improves corrugator runnabilty and reduces flute fracture 4

New Zealand Exports • New Zealand is an exporter of a wide range of primary produce • Kiwifruit, apple, meat, dairy products etc • Supply chains are often long and include significant periods in cool storage • The level of humidity in cool storage cycles numerous times which stresses packaging • High performance packaging is critical to the safe and efficient transport of each product • Virgin pulp based packaging products are a durable, cost effective and environmentally friendly solution • Eucalyptus pulp a key input into Kraftliner and Semi chemical medium, both of which are tailored for packaging solutions in demanding applications 5

New Zealand Exports Apple • NZ$780 mil YE Dec 2018 • 21 million cartons • Forecast to increase in 2019 • Planting continues to increase Kiwifruit • Export revenue $2.2 bil YE Mar19 • 150 million single layer trays • Japan, EU and China 72% share • Higher value Gold share increasing 6