© Altia 2011 Altia Koskenkorva Plant Modern plant with unique technology, know-how and efficient processing of barley Unique technology to process barley-based products and applications © Altia 2011 Koskenkorva – part of Altia production and logistics network in the Nordics Distillery Production Warehouse Office Koskenkorva Rajamäki Helsinki (HQ) Oslo Stockholm Odense Svendborg 3 13/4/15 Tabasalu Riga Copenhagen We have 1 Distillery 3 Bottling Plants Warehouses & offices in 6 countries © Altia 2011 Koskenkorva quick facts The plant produces grain spirit, starch and animal feeds for Altia and its customers. We use almost 200 million kg of Finnish barley annually: nearly 15% of barley harvest in Finland and more than 30% of saleable barley. Versatile product range enables unique material efficiency. Production in 3 uninterrupted shifts, plant operational 350 days/year 4 13/4/15 Personnel about 90 Grain spirit produced of Finnish barley is the raw material for Altia’s alcoholic beverages and Finlandia Vodka. Starch produced for the paper and board industry as well as for the breweries and food industry Animal feed generated as a valuable by-product © Altia 2011 Koskenkorva highlights High-quality barley spirit • • • • Continuous (24/7) production process of barley ethanol Modern distillery utilizes the raw grain efficiently Continuous improvement in energy and material efficiency Quality control, end product analyses and process definitions Unique barley starch • • • • • The world’s only barley-based starch High standard of purity, hygiene and freshness Uniform quality GM-free, full traceability of used barley grain Analogy with malt in the manufacturing of beer Liquid and dry animal feed • • • Documented and researched nutritional value and production results Liquid feed for pigs with valuable feed components Dry feed for cattle as a source of fibre 5 13/4/15 © Altia 2011 Koskenkorva plant 6 13/4/15 © Altia 2011 Complete use of grain Unique material efficiency Koskenkorva plant uses the whole barley grain and all fractions material- and cost-effectively. Husk 2% to energy Waste Water Sludge to Fertilizer Starch 30% Animal Feed 43% Ethanols 25% (half of which is carbon dioxide) 7 13/4/15 © Altia 2011 At the heart of barley • Finland’s largest single barley grain user and manufacturer of grain spirit • High quality Koskenkorva barley spirit is raw material for Altia’s own alcoholic beverages and for Finlandia Vodka. • Barley grain based products are marketed to Nordic and Baltic countries and to selected vodka-belt countries. • In the future, usage of barley will increase as Altia’s Rajamäki Plant will specialise in spirits and as starch binding agents produced of renewable raw materials substitute oil-based binding agents. • Exceptional grain traceability of Finnish barley 8 13/4/15 © Altia 2011 9 13/4/15 © Altia 2011 10 13/4/15 2014e 2013e 2012e 2011e 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1000 tn Annual barley usage 200 180 160 140 120 100 80 60 40 20 0 © Altia 2011 Production of ethanol, starch and animal feed Barley over 190 mill kg / year Ethanol production approx. 30 m litres Technical ethanols Barley ethanol Carbon dioxide Paper and cardboards industry 11 13/4/15 Starch production approx. 50 m kg Protein feeds Barley starch Brewing industry Animal feed production approx 70 m kg Sugars and sweeteners Energy feeds Foodstuffs industry © Altia 2011 Starch and feed customer references 12 13/4/15 © Altia 2011 Thank you! © Altia 2011 From field to bottle Grain from the farmer Storage silos 3-4 weeks Milling 0.5 h Mashing 5 h Fermentation 45 h Distillation 1 h Transportation to Rajamäki 1-2 days Beverage production 1 day Logistics 14 13/4/15 © Altia 2011 Unique distillation process BARLEY DRY MILLING THE SEPARATION OF FIBRE PROTEIN AND STARCH WASHING OF STARCH A HUSKS 2% ANIMAL FEEDS 43% STARCH B MASHING DRYING 15 13/4/15 BARLEY STARCH 30% FERMENTATION CARBON DIOXIDE 12.5% DISTILLATION BARLEY ETHANOL 12.5% © Altia 2011 Koskenkorva quality has been verified Altia operations are qualified according to international standards. ISO 9001:2008 certification verifies the level of quality management at Altia Audited by Lloyd’s ISO 14001:2004 certification verifies the attention Altia is paying towards environmental management Audited by Lloyd’s OHSAS 18001:2007 certification verifies the attention Altia is paying towards occupational health and safety management Audited by Lloyd’s 16 13/4/15 © Altia 2011 Koskenkorva plant influences the economic activities of the surrounding community Transportation • Animal feed drivers • Starch drivers • Grain drivers 80 10 hundreds Farms producing barley • Contract farmers • Other farmers 1500 1000 Animal farms buying feed 1500 Maintenance services 17 13/4/15 15 - 20 man-years © Altia 2011 Daily traffic Grain 15 - 30 transport lorries Barley ethanol 1 transport lorry Starch 10 transport lorries Animal feed 30 - 35 transport lorries Carbon dioxide 1 transport lorry Peat 18 13/4/15 5 transport lorries © Altia 2011 Building the finest distillery in the Nordics 1938 Decision to build at Koskenkorva 1992 Increasing capacity of ethanol to 20 000 tonnes 1945 Rectification plant for sulphite alcohol 1993 Feed production by Feedmix Ltd. 1952 Ethanol distillation Potato, grain in the late 1950’s Production capacity 1 500 tonnes ethanol 1973 New distillation unit and stillage dryer Production capacity 5 000 tonnes ethanol and 6.5 million kg distiller’s grains 1987 Barley starch factory Production capacity 15 000 tonnes 100% ethanol 30 000 tonnes starches 60 000 tonnes animal feeds 10 000 tonnes carbon dioxide 19 13/4/15 1996 Capacity of starch 40 000 tonnes 2003 Dehydrated technical ethanol approx 350 tonnes/month 2004 Capacity of starch 50 000 tonnes 2010 Altia as minority shareholder in starch modifying company Chemigate Increasing capacity of ethanol to 24 000 tonnes 2012 Dehusking of barley into use © Altia 2011 Modern technology to enable efficient processing of barley • • • • 20 More effective distillation with renewed mash column Modern separation technology and increased capacity obtained in starch process by using tricanters Increased hygiene in feed production with new equipment New technology to be taken into use in cleaning barley will improve energy efficiency 13/4/15 © Altia 2011 Our work for the good of the environment • Utilised waste 99.11% of the total waste amount • The goals in proportion to production include • a decrease in energy use by 8% and • a decrease in the consumption of chemical oxygen by 6.1% • a decrease in the consumption of clean water by 4.8% in comparison to the 2009 level by the end of 2012 Achieving Environmental Goals at the Koskenkorva Plant Energy use (steam + water) Development 2009 - 2010 Goal for the end of 2012 -19 % -8.0 % Waste water -29.4 % -6.1 % Consumption of clean water -25.3 % -4.8 % 21 13/4/15 © Altia 2011 22 13/4/15 © Altia 2011 High quality starch to technical as well as food industry applications • The largest starch plant in the Nordic countries • The world’s only barley starch manufacturer • Altia is a minority shareholder of Chemigate Oy specialised in modifying native starch into customer-ready products. • Pro-active R & D to find new applications for barley starch to substitute oil-based raw materials 23 13/4/15 Barley starch is also used in beer brewing. © Altia 2011 Animal feed for Finnish farms • The Koskenkorva Plant produces a significant amount of valuable feed fractions used in farms. They are utilised in breeding of both cattle and pigs. • Liquid feed for pig farms are valuable feed components due to their high content of protein and/or carbohydrate since there is global shortage of vegetable proteins. • Dry feed is sold to cattle farms as a source of fibre. • Feed is mainly sold to farms in Southern Ostrobothnia, which minimises the carbon footprint of the product. Barley comes from farms within 100 km. Feed is sold within 70-km radius. 24 13/4/15 © Altia 2011 Koskenkorva plant in Altia business structure CEO Industrial Services Supply Chain Contract Services Sourcing Technical Ethanol Starch and Animal Feed Koskenkorva Plant Supply Chain Finland Supply Chain Baltics Supply Chain Scandinavia Supply Chain Dev. & Planning Brands Category Management • Brand Marketing • Product Management • Trade marketing • Market Research Product Development Local Sales and Marketing • Finland • Sweden • Norway • Open Markets: • Denmark • Estonia • Latvia • Travel Retail • Export Trading Regional Functions • Supplier Management • Marketing Management • Portfolio Management Finland: SkyCellar Wennerco Sweden: Philipson Söderberg Bibendum Norway: Ström/Bibendum Best Buys Support functions: HR, IT, Legal, Business Development, Finance, Treasury, Communications 25 13/4/15 © Altia 2011