Pulp and Energy business line
Pulp and Energy business line supplies pulp mills, process islands (i.e., the equipment for the different stages of the production line), such as fiber lines and recovery islands, and process equipment for customers using chemical and mechanical pulping technologies; as well as bio-power plants, power boiler islands and related environmental systems, such as flue gas cleaning solutions; and biomass conversion technology-based solutions, such as gasification of biomass and waste, lignin separation technology and pyrolysis, primarily for the pulp, paper and energy industries.
Pulp and Energy business line's customers are mainly mechanical and chemical pulp producers (global pulp and paper producers, major regional companies and smaller, local companies) as well as companies in the panelboard industry. The most important geographic markets are South America and Asia (China in particular), where the majority of new projects have been located.
Deliveries in Pulp and Energy business line are typically project based. Valmet typically enters into a bidding process for new projects. A typical pulp mill project lasts between 12 and 24 months and includes project management, engineering, manufacturing, delivery and start-up of equipment and a responsibility for achieving agreed process parameters. The scope of contracts varies from equipment supply only to the delivery of full EPC scope (Engineering, Procurement and Construction, excluding civil works). Sales are typically under fixed price contracts.
Source: Valmet Capital Markets Day 2016
- Growth in board and tissue consumption in Asia
- Need for virgin wood pulp. Decreasing availability of recycled paper and limitations to recycling rates
- Production concentrating to larger pulp lines and mills
- Growth in energy consumption
- Demand for sustainable energy
- Modernization of aging plants
- Incentives and regulation