Ekman & Co
New Era in European Wood Pellets Supply
- 900.000 tons per year from Vyborg in Russia -
Björn Vikinge, Vice President Bioenergy
Bydgoszcz 17 June 2010
Business Concept
To add value to the supply chain
for forest related products
worldwide
Ekman & Co History
1802
Ekman & Co is founded
1992
Ekman acquires Intercontinental Cellulose Sales Inc., New
York. Sales volume exceeds 1,000,000 tons for the first time
1995
Catena sells Ekman to a group of investors consisting of the
Ekman family, MVI, Skandia and the company’s employees
1999
Atle AB buys MVI’s part of the Ekman shares. Sales volume
exceeds 2,000,000 tons for the first time
2002
Ekman celebrates its 200th anniversary
2004
Ekman acquires KC International, New Jersey
2006
Atle AB and Skandia Invest sells its shares to the Ekman
family and the Ekman employees
2007
Formation of the Bioenergy Division
Ownership Structure
Ekman family
Employees
31%
69%
Board of Directors
Matts Ekman
Jan Svensson
Claes Ekman
Chairman of the Board.
Born 1946.
Member of the boards of Investment
AB Öresund, Profoto AB and
Spendrup Investment AB.
Previous positions: First ExecVP and
CFO of Vattenfall Group 2001-2006,
Finance Director of Electrolux Group
1981-2000,
Born 1957.
President & CEO of the
Ekman Group.
Born 1944
Entrepreneur
Treasurer in Ekman Family
Association.
Michael Olsson
Oscar Ekman
Born 1954.
Member of the board of the
Ekman Foundations.
Benny Johansson
Born 1971
Employee
representative.
Pulp Sales
Born 1963. Chairman of the
board of Technology Nexus AB
(publ) and Satpoint AB.
Previous positions: Founder,
CEO and member of the board
of Tradimus AB. CEO and
member of the board of
Electrolux Scandinavia AB.
Frank Graves
Born 1955. President of North
Drive Group Inc., Toronto
Canada, Investments and
advisory services. Senior
Advisor to Renaissance Capital,
Moscow, Russia. Senior Advisor
to RusFor, Tune, Russia.
Ekman & Co AB
• One of the world’s leading sales and marketing organizations,
focusing in the global forest industry
• Employs 175 people at about 40 locations worldwide
• Additionally represented in more than 100 countries
• Ships about 3,4 million tons of pulp, paper, biomass and recovered
material annually
• Coordinated via three regional hubs
Ekman Group of Companies
Hub Office
Sales Office
Level of interaction
Anything from occasional spot trading to fully integrated partnerships possible:
Scope of services provided
Fully integrated Partnership
Limited Partnership
Global Agency representation
Limited Agency representation
Regular Spot trading
Occasional Spot trading
Level of integration
Volume & Turnover
Volume & Turnover
3,000
2,500
2,000
Tons - 1000
1,500
USD million
1,000
500
0
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Vyborgskaya Cellulose
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900,000 ton annual production
Ekman & Co exclusive sales agent
Production based on roundwood from NW Russia
Turnkey delivery from ANDRITZ Group
- 2 wood processing lines
- 4 belt dryers
- 36 pellet presses
Integration with pulp&paper mill provides economies of scale
Focus on industrial market – possibility to target consumer market
Sales with long-term focus
Own port at mill site
Start of production – Q3 2010
Vyborgskaya & Ekman - A Serious Partnership
• Reliability – Punctual loading and deliveries from
several quays at once in two different ports
• Quality – Debarking lines with ability to mix in bark
during pellet production will allow Vyborgskaya to
produce to clients’ specification
• Flexibility – Additional storage allows Vyborg to adapt to
clients’ needs and seasonal demand
• Common sense – A good professional relationship with
our partners and clients from contractual terms and
documentary demands to payment control
Loading from own port
Wood Mix and Sustainability
• Vyborgskaya are already buying 49 year cutting rights
for large areas of Forest in NW Russia
• Pellets will be manufactured from a mix of different tree
species including Birch, Spruce, Pine and Aspen
• A partial FSC will be available from start up, with higher
FSC content during year two
What Makes the Project Unique?
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Raw material from own forest leases
Control of exports through own port
Short shipping distances
Long-term chartered carriers
Very flexible production unit
Owner has a long forest industry track record
Sales controlled by experienced international forests products
trader
• Client contracts of several hundred thousand tons per year
Forests in Europe
A turnkey development by Andritz
• All processing and manufacturing equipment will be supplied
by Andritz the global market leader in wood processing
equipment
• Wood processing will be supervised by Andritz Finland. Two
de-barking lines will allow separate flow of sawdust and bark
• Andritz Sweden will oversee the installation of four large belt
dryers. These will be installed to operate with the excess
steam from the pulp mill. This will mean no discolouration and
a lower ash content in the final product
• Andritz Denmark will manage the installation of 16 large
hammer mills and 36 pellet presses, with an hourly output of
125 tons.
• Andritz are guaranteeing both quality and quantity
Plant location
Map of All Port Options
Aerial View of Pellet Plant and Port
Foundation completed 2009 for 7500 ton silo
Existing building which will house 16 hammer mills and
36 pellet presses
The “Metro”: a 900 m conveyor that will also travel some
distance underground
Europes largest wood yard! over 25 hectares which will
hold more than 700 000 m3 at a time
Andritz hammer mills being erected
Silos being erected
Foundation for 4 large belt driers
Foundation for 4 large belt driers
Foundation for conveyor from chipper to drier
Foundation for conveyor from chipper to drier
Rotobraker foundation
Foundation of chip conveyor
Foundation for log vibrator to remove sand from logs
Thank you for your attention
www.ekmangroup.com